The Dax index slipped into the red zone by the end of the week, after a brief all-time high in the morning. By the Xetra closing, the index was calculated at 21,394 points, a 0.1% decline from the previous day’s close.
The day’s biggest loser was MTU, which was affected by the announced change of its finance chief in the summer, causing uncertainty among investors.
In the past two trading weeks, during which the Dax gained over 1,500 points, there were four instances of so-called “gaps”where the market opened higher than the previous day’s close. “All these gaps were not filled, but instead, subsequent buying propelled the index further upward and at the end of the day, a new all-time high was recorded”said Konstantin Oldenburger, a market analyst at CMC Markets.
“However, today was different. After reaching a new all-time high of 21,520 points, the market reversed and fell below the previous day’s close. This could mark a short-term peak for the index’s recent surge”Oldenburger added.
“This would be timely, just before a packed trading week, in which the market is expected to digest numerous quarterly earnings and central bank meetings. The coming days may see volatile trading, during which some overextensions may be corrected, which could then pave the way for the Dax to continue its upward trend and reach the high hurdle of 22,000 points”Oldenburger concluded.
The European common currency was stronger on Friday afternoon, with one euro equivalent to 1.0515 US dollars and one dollar equivalent to 0.9510 euros.