Take a deep breath after a weak start to December: DAX is ultimately friendly in Tuesday’s meeting

At the start of Tuesday, the DAX was slightly up. Over the course of the day it remained in green territory, even if it came back somewhat from the day’s high. It ended the session 0.51 percent higher at 23,710.86 points.

Past 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.

Setback in the DAX

After a recent strong recovery, the DAX performed weakly on the first day of December. The DAX, which had recovered strongly at the end of November, had to give up again. In the meantime, it had even dropped to 23,433 points on Monday. Ultimately, however, he was able to prevent the worst in the price chart and escaped again above the round mark of 23,500 points and the simple 200-day line as an important trend barometer.

The setback on Wall Street was more moderate on Monday evening and no clear trend emerged in Asia on Tuesday.

prospect of USInterest rate cut

Expectations of an interest rate cut by the US Federal Reserve in December after further weak US economic data the day before, as well as the prospect that Kevin Hassett could succeed Fed Chairman Jerome Powell, had a supportive effect. He is likely to pursue a dovish monetary policy.

For expert Constantin Lüer from NordLB, an interest rate cut remains the more likely scenario because, in his opinion, the negative signs for the US economy are likely to increase rather than decrease. “The ISM purchasing manager survey signals that the sleeping beauty among manufacturing companies will continue in November,” wrote the expert. The uncertainty surrounding customs policy and the geopolitical situation remains a key stress factor.

Editorial team finanzen.net / dpa-AFX / Dow Jones Newswires