Dax Plunges to Minus at Noon – Investors Turn Cautious

Dax Plunges to Minus at Noon - Investors Turn Cautious

The Dax failed to break out of the red zone by midday, after a weak start on Monday. By 12:30 pm, the index was calculated at around 20,330 points, a minus of 0.4% compared to the previous trading day. At the top of the price list were Siemens Energy, Commerzbank, and Rheinmetall, while at the bottom were Sartorius, Vonovia, and BMW.

“Investors are becoming increasingly cautious and see the Dax’s potential for the rest of the year 2024 as exhausted” said market expert Andreas Lipkow. The Dax is thus consolidating further in the price range of 20,300 to 20,400 points.

The European and German purchasing managers’ indices in the service sector signaled a brightening of the overall situation, according to Lipkow. The situation in the manufacturing sector, however, remains tense for the time being. “Market participants had already injected a lot of optimism into European stock markets in advance, so the jubilant storms on the financial markets are absent.”

In general, the focus remains on the central bank meetings this trading week, said the market expert. “Investors are eagerly awaiting the statements of the central bankers, especially in the context of the upcoming trading year 2025.”

The European common currency was slightly weaker on Monday at midday: one euro cost $1.0490, and a dollar was worth $0.9533 euros.

Meanwhile, the oil price fell significantly: a barrel of Brent North Sea crude cost around $73.74 at 12 pm German time, a decrease of 75 cents or 1.0% compared to the previous trading day’s close.