At the start of the new week, hopes of an early end to the government shutdown in the USA drove the DAX and helped it make gains.
At the opening, the DAX was 1.51 percent higher at 23,925.36 points. It continued to be significantly positive as the price progressed and was able to briefly exceed the 24,000 mark again. At the close of trading in the evening there was a gain of 1.65 percent at 23,976.07 points.
The support for the German leading index remained in the 23,500 point range once again on Friday, initially preventing an even more significant correction. Now it’s about sustainably overcoming the 24,000 point mark again. Frank Sohlleder, analyst at broker ActivTrades, made it clear: “It takes more than just a short-term recovery to confirm seasonality and underpin the year-end rally with substance.”
DAX records at a glance
On October 9th, the DAX reached a new record high of 24,771.34 points. Ultimately, it ended that day at 24,611.25 units, which was also a new record based on the closing price.
Hope for an end to the shutdown
A solution is emerging in the partial shutdown of US government operations (shutdown), the longest in US history to date. The Senate voted with Democrats to discuss a transition budget from the House of Representatives. This means that the first important hurdle in parliament has been overcome. If an agreement is reached in the government dispute, uncertainty will disappear from the market, economic data can be published again and investors will get a better picture of the economic situation.
Editorial team finanzen.net / dpa-AFX / Dow Jones Newswires
Image sources: Aleksandra Gigowska / Shutterstock.com, Maksim Kabakou / Shutterstock.com