The leading German index remains at its hurdle of 25,000 points in search of trends before the weekend. However, the major decline could cause significant fluctuations today.
The DAX started with an increase of 0.19 percent at 25,075.33 points. As the market progresses, the stock market barometer remains in search of direction and cannot permanently move away from the psychologically important 25,000 hurdle.
Technical DAX picture is constructive
Investors first have to digest the entire package of recent events. The Iran agreement has been postponed, oil is supposed to flow through the Strait of Hormuz again and expectations of a US interest rate increase are rising. It remains to be seen whether everything will come and stay that way. “The technical picture for the DAX is constructive, but a sustained increase above the 25,000 mark is still a long time coming,” said Helaba this morning. The leading index was only able to end six trading days with positive signs with difficulty.
Specifications do not paint a clear picture
The guidelines are not clear at the end of the week, because in Asia, important stock exchanges in Japan and South Korea were unable to follow the price gains on the New York NASDAQ. There will be no new impulses from the USA on Friday because of the long weekend there. Market observer Thomas Altmann from QC Partners therefore expects reduced sales in Europe, which will make the market more susceptible to fluctuations.
Big expiry day
The expiry on the futures exchanges due at midday could also contribute to such fluctuations. Then options and futures on stocks and indices expire, which could at least cause some volatility. Altmann also sees the 25,000 point mark as the focus.
No round of talks between the USA and Iran in Switzerland
The Swiss government has canceled the first round of talks planned for today to shape the framework agreement between the USA and Iran near Lucerne. “The talks at Bürgenstock will not take place today as planned,” said the Foreign Ministry in Bern. No reasons were given for this.
DAX record last in January
The gap to record levels remains the focus for the German stock market at the moment. 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.
Carolin Ludwig, Alexandra Hesse, Claudia Stephan, Bettina Schneider, finanzen.net editorial team with material from dpa-AFX and Dow Jones Newswires