DAX Continues Its Upward Trend – US Employment Data Brings Optimism

The German benchmark index DAX has found connection to the positive sentiment on Wall Street at the start of the week and continued its upward trend. It has increasingly distanced itself from the recently hard-fought 18,000-point mark and recorded a gain of 0.28 percent in early trading, which corresponded to a level of 18,051.14 points. The MDAX also followed suit, posting an increase of 0.27 percent to 26,371.64 points. The EuroStoxx 50, as a barometer for the Eurozone, also traded in positive territory with an increase of 0.2 percent. In this process, the DAX may have overcome the crucial psychological 50-day moving average, which from a technical chart perspective could represent an important juncture for the further course of the market. Chart technicians are watching the current movements with interest and anticipate an imminent decision about the future market direction. A recent US labor market report, which showed weakness and thereby fed expectations for a potential imminent interest rate cut, provided a catalyst for the upward movement. This has lent a certain optimism to the world's stock exchanges. Experts at UBS interpret the current developments as signs of a "soft landing," where both growth and inflation may stabilize at a cooling level simultaneously, without risking abrupt economic downturns. Investors may now be keenly monitoring further economic indicators as well as monetary policy signals from the USA and Europe, in order to adjust their strategies accordingly. In this context, the DAX could prove its status as an important indicator of market sentiment and provide additional impulses for the local and European markets.