DAX Between Record Highs and Slight Setbacks Despite Expected Interest Rate Cuts

The DAX's winning streak continues at the start of this shortened trading week as the German stock market index initially reached new all-time highs. Expectations of interest rate cuts in the US, fueled by an ongoing dynamic economy, played a significant role in this development. However, by midday, the stock market barometer saw a minimal consolidation, losing 0.16 percent to a level of 18,177.32 points. "Investors are holding firm to their stocks, and those not yet invested increasingly feel pressured to jump on the still-moving market train, which drives up prices," explains Jürgen Molnar, capital market strategist at RoboMarkets. He notes, however, that a wave of profit-taking could potentially reverse the current trend. Meanwhile, the MDAX of mid-sized companies sustained a larger loss, falling by 0.55 percent to 26,475.68 points. The European benchmark index EuroStoxx 50 also declined by 0.4 percent. The stock market is only open until Maundy Thursday this week, with Good Friday as a holiday putting a limit on trading. The defense sector drew particular interest as its corporations benefit from the tense global security situation. Outstanding winners were Rheinmetall and Hensoldt, whose shares rose by 3.8 percent and 7.9 percent, respectively, setting new record highs – Rheinmetall at the top of the DAX, Hensoldt in the MDAX. While LEG Immobilien shares increased by 1.7 percent after positive evaluations by Barclays Bank and a revised classification from Goldman Sachs, Delivery Hero had to absorb a setback of around six percent following the news of the departure of their long-standing CFO Emmanuel Thomassin to British fintech Wise. The Deutsche Pfandbriefbank appeared to be accompanied by positive future prospects, with its shares climbing by 3.4 percent, driven by the expectation of a significantly higher result for the year 2024. In the meantime, laboratory service provider Synlab presented disappointing operating margins and a less optimistic outlook for the year 2024, causing its shares to fall by 1.9 percent – however, the impending acquisition by Cinven continues to be a focus for investors.