The Dax index started the trading day on Friday with losses, but still held its all-time high. By 9:30 am, the leading index was calculated at around 22,535 points, a 0.3% decline from the previous day’s close. At the top of the stock list were Rheinmetall, Commerzbank and Zalando, while FMC, Siemens and Qiagen trailed at the end.
“Encouraged by the prospect of a more business-friendly federal policy after the elections, as well as a beginning economic upswing in China and a strong reporting season for the fourth quarter, the Dax has reached the 22,500 mark” said Jochen Stanzl, chief market analyst at CMC Markets. Investors were also speculating on a reform of the debt brake, which CDU chancellor candidate Friedrich Merz has openly advocated for.
“As soon as liquidity flows again, a political dynamic similar to the first months of the coalition government could unfold” Stanzl said. “The sudden awakening of the MDax from its slumber also reflects the hopes of investors for a genuine economic upswing in Germany.”
A positive impulse also came from Siemens on the previous day, as the company’s strong quarterly numbers were accompanied by the statement that China was already showing positive trends, which could radiate to the European market. “A signal that also caught the auto manufacturers, who are heavily dependent on sales in the Far East” the market expert said.
As long as companies continue to present impressive quarterly numbers and set new growth impulses through the use of artificial intelligence, the mood will remain optimistic. “The recent resurgence of interest in technology stocks leads to a global rally, despite individual themes that investors would rather ignore.