Signals of relaxation between the USA and China allow the German leading index to expand its recent gains somewhat at the start of the new week.
The DAX opened Monday with a gain of 0.38 percent to 24,332.85 points. In further trading, the stock barometer was stable and largely slightly positive, closing 0.28 percent higher at 24,308.78 points.
Initially no further records in sight
It was only on October 9th that 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.
Signals of detente between the USA and China
After the first signs of relaxation in the trade dispute between the USA and China, there were already signs of a friendly start to the week on the German stock market on Monday. The DAX thus moved closer to its record high again, but remained within its most recent trading range, which reaches just under the 24,400 point mark. The leading index last crossed this zone around two weeks ago.
There was positive news from China: both countries have come closer to each other in the customs and trade conflict and reached a preliminary agreement, as Li Chenggang, Vice Secretary in the Chinese Ministry of Commerce, explained on Sunday. This now has to go through an internal approval process on both sides. Nothing was initially known about the specific content. After the talks in Kuala Lumpur, US Treasury Secretary Scott Bessent also spoke of constructive negotiations that serve as preparation for the planned meeting between US President Donald Trump and China’s head of state Xi Jinping in South Korea on Thursday.
Monetary policy decisions in view
The DAX has an eventful week ahead of it. The focus is on monetary policy decisions by central banks as well as numerous company reports on both sides of the Atlantic.
At the start of the week, however, things initially remained quiet – the focus was on the ifo index, an important barometer for the German economy. In October, the ifo business climate rose by 0.7 points to 88.4 points. This is more than analysts expected with an average of 88.0 points. However, the most important German economic barometer was only able to partially compensate for the dampening of sentiment in September. The approximately 9,000 companies surveyed once again assessed the current situation as worse than in the previous month. In contrast, the valuation of future business improved significantly in October. The business climate has “noticeably improved,” particularly in the services sector, according to the institute’s statement.
Editorial team finanzen.net / dpa-AFX / Dow Jones Newswires