The DAX started trading slightly higher on Thursday, topping its record high set in July. In the end, he also left the trade in a friendly manner.
The DAX started Thursday’s session on the Frankfurt Stock Exchange with a new all-time high with a starting price of 24,674.65 points, plus 0.32 percent. Afterwards he was largely friendly and meanwhile reached the current record high of 24,771.34 points. Ultimately, the DAX ended the day only 0.06 percent higher at 24,611.25 units.
The day before, the leading index had already made gains late in the day and ultimately ended the day with a new record closing at 24,597.13 points. This final record was broken again this Thursday.
Support from Fed Protocol & Co.
According to chart technology expert Martin Utschneider from the broker RoboMarkets, a sustained breakout above the previous record could open up further upward potential to over 25,400 points. The market is currently being supported by the prospect of interest rate cuts in the US, as revealed in the Fed minutes published the previous day, a possible resolution to the political crisis in France and the continued strength of the US technology sector.
Balance sheet season is upon us
There is a lack of impetus before the start of the new quarterly reporting season in the USA. Statistically speaking, the final quarter could be positive for the DAX: “On average, the leading German index gained four percent in the fourth quarter,” wrote analyst Jochen Mörsch from HQ Trust recently.
At the start of October, hopes of a year-end rally had already begun to emerge last week. The hope of further US interest rate cuts is creating new price dynamics on the stock exchanges, commented financial market expert Andreas Lipkow. Stocks with a connection to the topic of artificial intelligence (AI) are currently in particular demand.
Ottobock IPO in investor focus
In the positive environment for stocks, an IPO was well received by investors. The prosthesis manufacturer Ottobock ventured onto the stock market.
Deutsche Börse DAX sentiment: Bulls with an absolute majority
The bull camp on the German stock market has continued to grow, according to the new Deutsche Börse survey on DAX sentiment. The bulls are now in the absolute majority among both institutional and private individuals: among professionals, the proportion has now increased by 4 percentage points to 51 percent compared to the survey in the middle of last week, and among private individuals by 5 points to 53 percent. Among institutional investors, the bear camp shrank sharply by 14 points to 21 percent, while the neutral camp increased by 10 points to 28 percent. Among private individuals, the proportion of bears only fell by 2 points to 30 percent; neutral sentiment was at 17 percent, 3 points less than a week earlier.
“Even if many investors cannot mentally turn their positions from short to long in one go when they lose, the increase in bulls does not exactly indicate that the majority of investors actually feel comfortable with these new commitments,” says Joachim Goldberg, who carries out and evaluates the survey for the stock exchange operator. “Rather, the fear of missing out may have played a decisive role in this repositioning,” he says. The underside is now much less protected than before, as the remaining pessimists have little to counter a major setback. This applies especially in the event that the bottom, at probably 23,850/900 points, attracts too little demand from neutral investors. On the other hand, the bull camp at 51 percent among institutional investors is not yet so densely populated that there is any need to fear massive profit-taking at the top.
Editorial team finanzen.net / dpa-AFX / Dow Jones Newswires