DAX with restrained momentum at record level

In the slipstream of global market sentiments and domestic corporate earnings, the German Stock Index (DAX) continued its record-breaking journey at a slow pace. Despite warning signs of a possible overheating, as experts from Landesbank Helaba emphasize, the market's upward trend remains unmistakably active. After an initially hesitant trading day, the DAX crossed the 18,200-point mark for the first time and closed with a modest gain of 0.11 percent at 18,199.06 points, marking a respectable increase of 1.5 percent for the week. Meanwhile, the MDAX, which reflects the performance of medium-sized companies, recorded a pleasing increase with a daily gain of 0.57 percent to 26,624.66 points, while the EuroStoxx 50 counteracted the trend with a decrease of 0.6 percent. Investors continue to focus on the quarterly reports, which influence several DAX heavyweights. The logistics specialist DHL shone on this day with a share price increase of 2.7 percent, buoyed by the positive quarterly results of American competitor FedEx, which sparkled with an unexpectedly high operating profit and announced another multi-billion dollar share buyback program. Similarly, the German sporting goods market was divided: While Puma accepted a price decline of 1.1 percent, due to less positive news from U.S. rival Nike, Adidas showed resilience and saw its shares rise by the same percentage. A leading role in the MDAX was taken by the defense electronics group Hensoldt with a noteworthy share price gain of 6.5 percent, an expression of the impending acquisition of electronics specialist ESG and the advisories to adjust the annual forecasts accordingly. Following in the footsteps of the DAX sector, Rheinmetall also pleased its investors, with its value surpassing the 500-euro mark for the first time with a gain of 2.4 percent. For the photo service provider Cewe, however, the financial outlook is more cautious in light of the persistent inflation: The SDAX-listed company anticipates no significant improvement for 2024 compared to the previous year, which led to a 4.7 percent drop in its shares. Meanwhile, an optimistic valuation by Societe Generale granted a share price increase of 3.4 percent to the forklift manufacturer Jungheinrich, thus highlighting the stock's potential for future growth. Outside the major indices, Synbiotic, a cannabis-focused investment company, experienced severe price fluctuations. Following a legislative decision by the Federal Council, its shares continued the upward rally and presented a strong upward trend. In the currency and bond markets, the euro was weak against the U.S. dollar, continuing the downtrend, and the yield on the bond market decreased slightly, while the Bund-Future achieved slight gains.