DAX stabilizes after correction – US technology stocks give boost

The Dax stabilized on Monday following the correction at the end of last week. The recent losses attracted initial bargain hunters and bolstered investor confidence. Additional encouragement came from gains in US technology stocks. The tech-heavy US index Nasdaq 100 reached another record high at the end of the week and continued its rally at the beginning of this week. Nevertheless, the Dax remains strained. Sentiment data from the US industrial sector, specifically the Empire State Index, were less negative than expected and had minimal impact in the early afternoon. Attention now turns to the release of the ZEW economic expectations on Tuesday, which could shed further light on the economic situation. By Monday noon, the Dax increased by 0.23 percent to 18,043.41 points, with the 100-day line continuing to act as support. However, the more significant gains from the morning could not be sustained by the leading index. Recently, the Dax confirmed the break of its uptrend, which had been ongoing since October 2023. The reasons for this are political uncertainties in France, discussions about potential EU tariffs against China, and the restrained interest rate policy of the Fed, which unsettles investors. The MDax lost 0.93 percent to 25,480.22 points after a friendly start, weighed down by a downward adjustment of the annual forecast from Carl Zeiss Meditec and negative news from Evotec. The medical technology manufacturer Carl Zeiss Meditec had to lower its targets for the 2023/24 fiscal year due to an unexpectedly slow market recovery, causing the stock to plummet by nearly 16 percent. Evotec, on the other hand, faced a negative analyst assessment and lost 7.8 percent. United Internet was quoted 1.1 percent lower, impacted by a dispute involving the cable company Tele Columbus. Nevertheless, the company expects compensation. Adidas recorded a 4.3 percent decline after a report by the 'Financial Times' on the sportswear manufacturer's business in China caused uncertainty. In contrast, the shares of Deutsche Börse rose by 2.1 percent, thanks to a buy recommendation from the analysis firm Kepler-Cheuvreux. Qiagen recovered from significant losses following positive statements about future growth and was recently only down by 0.3 percent. In the SDax, SAF-Holland led the gainers' list with a 6 percent increase. Pfeiffer Vacuum, however, lost 1.4 percent after the vacuum pump manufacturer failed to release its quarterly report on time and is thus being ejected from the index. Consequently, the electrolysis specialist Thyssenkrupp Nucera remains in the small-cap index. The Euro was recently traded at 1.0712 US dollars, after having fallen to its lowest level since early May on Friday. The European Central Bank had set the reference rate at 1.0686 dollars at the end of the week. In the bond market, the yield remained stable at 2.44 percent. The bond index Rex fell by 0.11 percent to 125.16 points, and the Bund-Future lost 0.56 percent to 132.31 points.