DAX Index Reaches New High, Volumes Remain Low
The German DAX index kicked off the trading day on Tuesday with moderate gains, briefly surpassing the 24,000-point mark for the first time. By 9:30 am, the index was calculated at around 23,955 points, representing a 0.1% increase from the previous day’s close. RWE, Rheinmetall and Vonovia led the pack, while BASF, Allianz and Mercedes-Benz trailed behind.
The DAX has already reached a new all-time high, its 26th this year and has set a record 30 times in the first half of 2024, according to Thomas Altmann of QC Partners. “It’s clear that the first half of 2025 will be at least the sixth best in the DAX’s history in terms of the number of all-time highs” he said, referencing the record 40 all-time highs set in the first half of 1998.
However, Altmann noted that trading volumes in the DAX were extremely low on Tuesday, with the fewest number of DAX shares traded since January 3, a time when the market was still in the holiday season. This has raised concerns that investors may be hesitant to buy at the current high levels and that a potential correction could be on the horizon. “As long as there are no profit takings, it’s okay, but larger profit takings could quickly put pressure on the DAX” Altmann warned.
Meanwhile, the euro was stronger against the US dollar, with one euro equivalent to 1.1272 US dollars and one US dollar equivalent to 0.8872 euros. The Brent crude oil price, however, dipped slightly, with a barrel of the North Sea variety trading at around $65.49 at 9 am German time, a 5-cent or 0.1% decrease from the previous day’s close.