DAX holds ground just below record high despite Wall Street records

Powered by new records at the US stock markets, the German stock index DAX appears largely unimpressed at the start of the new trading week, stabilizing just below its latest record mark. After this was recorded last Friday morning at almost 17,817 points, a slight disenchantment set in due to subdued inflation data from the Eurozone, leading to moderate profit-taking. On Monday, the DAX showed a marginal increase of 0.01 percent to 17,736.06 points, while the MDAX of mid-sized stocks recorded a decline of 0.36 percent to 26,025.42 points. The momentum of the US stock markets at the end of last week was fueled by well-received economic news, the hope for flourishing business in the Artificial Intelligence sector, and the prospect of a relaxed monetary policy, which drove the technology indices and the S&P 500 to record highs. Market observers, however, remain ambivalent: While the rally on Wall Street shines in portfolios, Thomas Altmann, portfolio manager at QC Partners, points to increasingly visible warning signals. Jochen Stanzl, Chief Market Analyst at CMC Markets, maintains a cautious stance and discusses potentials for selling dynamics triggered by disappointing events – such as a speech by the US Federal Reserve Chairman, the National People's Congress in China, or upcoming US labor market data. Within the DAX, MTU took the lead with an increase of 2.2 percent after the engine manufacturer presented its annual financial report. In contrast, Henkel stood at the lower end of the index, struggling with a decrease of 4.4 percent. The consumer goods company's statements about expected headwinds from exchange rate effects due in 2024 led to disfavor in the market. In the MDAX sector, shares of Evonik rose by 0.5 percent. Despite a gloomy outlook for the year 2023, the forecasts for the following financial year and the quarter met expectations, which analysts received positively. Nordex benefited from an optimistic study by Santander Bank and recorded a price increase of 2.2 percent, while Aixtron showed signs of recovery after a tumultuous price drop, rising by 3.8 percent. Delivery Hero, influenced by an announced financing transaction, was also in the spotlight of investors with an increase of 1.8 percent. In the SDAX segment, shares of the Norma Group stood out, experiencing an upturn of 5.4 percent following an upgrade by Hauck Aufhäuser Investment Banking and garnering positive analyst comments.