Market report: DAX back on track for record high?

market report

As of: April 29, 2024 7:38 a.m

The DAX has recently been able to regain important brands – that fuels hope for more. In the new stock market week, the leading German index could now continue towards a record high.

The DAX is likely to continue its recent upward trend at the start of the week and make a small upward move at the start of trading. The broker IG currently estimates the German leading index at 18,221 points, which corresponds to an increase of 0.3 percent compared to the XETRA closing price.

The DAX is now heading towards its previous week’s high of 18,266 points – a jump above that would now give the German standard values ​​a further boost towards their record high from the beginning of April at 18,567 points. The price turbulence that pushed the stock market barometer down to 17,627 points in mid-April has been forgotten.

From a technical chart perspective, the DAX has been able to regain important lines as it catches up, including the correction trend that has existed since Easter and the 50-day line. This fuels hopes that the upward trend will continue.

However, Claudia Windt from Landesbank Helaba urges caution: Even if the DAX and the US stock exchanges have weathered the setback following disappointing data on US economic growth, further records for the stock indices are “by no means a given”.

As trading progresses, investors’ eyes are likely to turn to German consumer prices in April. Preliminary inflation data will be released at 2 p.m. In March, falling food and energy prices pushed the annual inflation rate down to 2.2 percent. For April, economists expect a slight increase to 2.3 percent.

While the German inflation rate is likely to remain just above the European Central Bank’s two percent target, inflation in the USA has recently proven to be stubbornly high. Against this background, market experts firmly expect that the US Federal Reserve will leave the key interest rate unchanged on Wednesday evening.

“Of the almost seven interest rate cuts that market participants priced in at the beginning of the year, one or two are currently left,” writes analyst Sven Streibel from DZ Bank.

Positive guidelines for DAX trading come from Wall Street at the beginning of the new stock market week. Investors there were encouraged to buy stocks on Friday by the renewed euphoria in the tech sector. The technology-heavy Nasdaq advanced two percent to 15,927 points. The Dow Jones index of standard stocks closed 0.4 percent higher at 38,239 points. The broad S&P 500 gained one percent to 5,099 positions.

In the run-up to the US Federal Reserve meeting, the Asian stock markets started the new week positively. The Shanghai stock exchange is currently gaining 0.88 percent. The index of the most important companies in Shanghai and Shenzhen also recorded significant price gains. In Japan, the stock exchanges will be closed today due to a public holiday.

In Asian foreign exchange trading, the dollar is showing weakness, while at the same time the euro is rising by 0.2 percent to $1.0732. A troy ounce of gold costs a good $2,332 this morning.

Oil prices are initially heading downwards at the beginning of the new week: a barrel (159 liters) of North Sea Brent costs $87.52, 0.8 percent less.

Among the individual stocks in the DAX, the car stocks in particular are drawing attention. The sports and off-road vehicle manufacturer Porsche started the new year significantly weaker due to the renewal of several models. Sales from January to March shrank by more than a tenth year-on-year to 9.01 billion euros. At 1.28 billion euros, the Group’s operating result was around 30 percent below the previous year’s figure.

Mercedes-Benz escapes criminal charges in the US diesel scandal. The US Department of Justice (DOJ) has stopped its investigation, the Swabian automobile company confirmed on Saturday in a corresponding report in the “Handelsblatt”. Mercedes-Benz had been accused of excessive emissions from around 250,000 diesel cars.

The takeover of Postbank could have expensive consequences for Deutsche Bank. In the dispute with former shareholders of the purchased institution over the appropriateness of the takeover price, the Cologne Higher Regional Court indicated that it would be able to find parts of these claims to be justified in a later decision, the Frankfurt-based company said.

Deutsche Bank is therefore making a provision for legal disputes in the second quarter. The total amount of all claims, including accrued interest, is estimated at around 1.3 billion euros.

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