After three weak weeks, there are signs of a new attempt at stabilization in the Dax on Monday. The leading German index gained 0.7 percent to 17,866 points in the first minutes of trading. The MDax of medium-sized stocks rose by 0.8 percent to 26,192 points. The EuroStoxx 50, the leading index for the Euroregion, advanced 0.7 percent.
At the beginning of April, the DAX had reached a record high of 18,567 points – after a strong start to the year with almost eleven percent growth. Since then, the index has been under pressure due to increased geopolitical risks and an unclear monetary policy course in the USA. While a downward turn in interest rates in June was initially considered a foregone conclusion, it now appears necessary to combat inflation for a longer period of time through high interest rates.
“After the recent sell-off, bargain hunters are now in the starting blocks,” commented portfolio manager Thomas Altmann from QC Partners. “For those who watched the 2024 rally underinvested, the current pullback is a welcome buying opportunity.” Investors initially reacted with relief that there was no further bad news from the trouble spots over the weekend.
The week will also be dominated by the reporting season. SAP kicks things off the evening after the US stock market closes.
