The German leading index is expected to show a positive trend at the start of the week, even if the news situation remains tense.
The DAX is expected to be a little firmer at the start of the week.
Chart image at a glance
Last Thursday, the DAX clearly brightened the chart picture with a huge trend reversal over the course of the day. After starting at the daily low of 23,715 points, it recovered by almost two and a half percent and closed at the daily high. The DAX formed a reversal formation (“bullish engulfing”) in the chart. “Such a formation actually represents nothing other than a change in mood,” wrote chart analyst Christoph Geyer in his commentary from the weekend. However, the previous downward trend was not pronounced enough to be able to expect a major movement. Nevertheless, a break in the most recent resistance zone is looming. After the round mark, it ranges from 24,500 points to almost 24,800 points.
The news situation remains tense
However, the news situation remains tense – and not just with regard to the Middle East war. Because of his displeasure with Europe and especially Germany, US President Trump announced a significant increase in US tariffs on vehicles from the EU on his Truth Social platform on Friday. The EU Commission reserves the right to take countermeasures if Trump actually follows through on his announcement.
Bull market in Seoul pushes KOSPI to record high
The stock markets in East Asia showed predominantly gains during trading on Monday. After there was no trading in China, South Korea, Singapore, Taiwan or Hong Kong on Friday, May 1st, business in China and Tokyo will be paused at the beginning of the new week due to the holiday. The clear outlier is the Seoul stock exchange, where the KOSPI climbs to a record high.
According to traders, US President Donald Trump’s plans to escort ships stuck in the Strait of Hormuz are at best providing some confidence. He did not say exactly how this would happen. At the same time, Iran warned against such an intervention. The Trump announcement does not provide any relief for oil prices. Iran had previously said that the US had responded to its 14-point proposal through Pakistan and that the response was being examined. However, Trump said it was unlikely that this would be accepted.
The drivers on the technology-heavy stock exchange in Seoul are strong price gains by memory chip manufacturers Samsung Electronics and SK hynix after both companies presented strong quarterly figures last week.
DAX record last in January
The gap to record levels remains on the German stock market. On January 13th, the DAX reached an all-time high of 25,507.79 points. Ultimately, it ended trading that day at 25,420.66 points, which also set a record based on the closing price.
Julia Walter, Alexandra Hesse, finanzen.net editorial team with material from dpa-AFX and Dow Jones Newswires
