The DAX stabilizes after recent setback: Support from US technology stocks

After a stable start to the week, the DAX also shows upward momentum on Tuesday. Broker IG forecasts the German leading index to be 0.4 percent higher in the early hours at 18,149 points. On Monday, the DAX nearly reached its low from last Friday at 17,951 points but managed to recover above the psychologically important mark of 18,000 points. Both this mark and the nearby 100-day moving average line seem to function as support zones, slowing the recent downward trend in the DAX. An additional boost for the German leading index comes from the ongoing strength of U.S. technology stocks. Indices on the Nasdaq are continuing their record chase. The Nasdaq 100 has already recorded an impressive gain of around 18 percent in 2024, while the Nasdaq Composite is nearly one percentage point higher. Investor focus continues to center on themes such as Artificial Intelligence (AI) and hopes for a shift in U.S. interest rates, despite the U.S. Federal Reserve maintaining its high interest rate policy last week. Simultaneously, UBS market strategists are evaluating the current political situation in Europe. Despite the uncertainties posed by the new elections in France, they see opportunities for investors. An overreaction to the political risk is likely unfounded, as the most probable outcome is a deadlock followed by compromises.