DAX Remains Near the Peak – Investors Await Inflation Data

Following the recent ascent of the DAX, investors in the German stock market seem to be taking a breather at the start of the week. On Monday morning, the German benchmark index was concrete in its movements, while not losing sight of last week's record high. The cues from overseas, where Wall Street was recently thrilled by artificial intelligence, appeared not to ignite fresh momentum at the Frankfurt Stock Exchange. Market experts, however, advise caution and not surprisingly warn of setbacks. Analysts at Landesbank Helaba emphasize this prediction, particularly based on the technical condition of the DAX. A critical review of market sentiment may be on the horizon—triggered by key inflation figures. According to Jochen Stanzl of brokerage firm CMC Markets, the consumer prices expected on Thursday in the Eurozone and the US inflation data based on personal consumption expenditures could provide crucial impulses for the upcoming orientation of monetary policy. While the MDAX of mid-cap companies had to accept a slight setback of 0.2 percent, the EuroStoxx 50 recorded only a modest decline of 0.1 percent. Among individual stocks, Rheinmetall stood out, achieving a new record high with a gain of 1.5 percent—a remarkable performance since the beginning of the year, making it the leader in the DAX. The expected increase in defense spending due to the Ukraine conflict is likely to be the driving force behind this. Meanwhile, BASF capitalized on a positive assessment by investment bank Stifel and saw an increase of 1 percent. In the MDAX, however, online companies suffered minor losses. Shares of Hellofresh dropped by 5 percent, Delivery Hero saw a decrease of 2.7 percent. SGL Carbon, a specialist in carbon fibers, is meanwhile considering a split, which sparked speculation about potential sales proceeds, thus initiating a price gain of 2.1 percent.