At the start of the new trading week, the German stock market initially continued its stabilization of the previous week and appeared cautiously friendly during trading.
On Monday, at the starting bell on the DAX board there was a gain of 0.56 percent to 24,860.67 points. As it progressed, it initially remained above the zero line, but is now falling back again.
The last DAX record
On January 13th, the DAX reached an all-time high of 25,507.79 points, exceeding the 25,500 point threshold for the first time in its history. Ultimately, it ended the day at 25,420.66 points, which was a new record based on the closing price.
Good guidelines provide a boost
The strong recovery of the most important US indices is giving the DAX a boost at the start of the week. The Dow Jones Industrial reached its new record high on Friday afternoon, but increased its gains significantly after the end of European trading. The NASDAQ 100 tech selection index, which was recently shaken by AI concerns, also stabilized. However, it is still below the most recently broken 100-day line – an indicator of the longer-term trend.
In addition, the Nikkei 225 in Japan also jumped sharply to a new record level on Monday after Prime Minister Sanae Takaichi’s ruling party achieved a clear election victory.
However, the 25,000 point mark could also prove to be a high hurdle for the DAX in the new week. The economic turbulence surrounding artificial intelligence, as well as the ongoing geopolitical concerns, have the potential to weigh on the German leading index again at any time. On the other hand, important economic data from the USA could support the stock market barometer, although a lot of positive things seem to have already been taken into account in the prices. The bottom line is that there is some evidence to suggest that the leading German index will probably not find a clear direction again in the new week.
Important economic data only later this week
The labor market report and inflation data are on the agenda in the USA on Wednesday and Friday, which investors will look for fresh signals about the course of the US Federal Reserve. The market is currently expecting the Fed to cut key interest rates twice in 2026 in order to make investments and loans cheaper and thus stimulate the economy. If wage growth, employment or price developments do not give rise to any particularly negative impulses, the interest rate path should not be called into question. If the economic data surprises positively, it could corroborate the interest rate cut fantasy.
Meanwhile, the company reporting season for the past year is entering a new round. However, the agenda is quite packed, especially on Wednesday and Thursday.
Editorial team finanzen.net / Dow Jones / dpa-AFX