Poor US Lead: DAX Slips Below 24,000 Points
The DAX is coming under increasing pressure and only partially recovered on Tuesday from a pre-market "bear rally." The German leading index closed with a daily loss of 0.76 percent at 23,949 points, just below the crucial psychological level of 24,000 points. Overnight, losses in US technology stocks were priced in negatively, putting further pre-market pressure on the DAX. The initial recovery rally from Monday is thus negated, and investors are preparing for further sell-offs or accordingly taking profits off the table. The lead from the US is unequivocally negative: The NASDAQ corrected by 2 percent, the broad-based S&P 500 shed 1.17 percent, and even the conservative Dow Jones fell by 0.5 percent. The highest vigilance is required from the bulls.
Fresenius Plunges Despite Strong Figures – Analysts Criticize US Growth
The hardest hit stock on Tuesday was Fresenius Medical Care (FMC). Despite presenting solid quarterly figures, the stock wore the "red lantern" in the DAX with a loss of 9.9 percent. Analysts primarily criticized the slow growth in treatment numbers in the US. Although the company is continuing its savings program to cut costs by €1.05 billion by 2027, market participants focused on the growth challenges.
DAX Faces Major Correction: A Negative Trend Before the Year-End Rally?
From a technical chart perspective, the German leading index is slowly but surely paving its way into a larger correction. The 100-day moving average has been broken and now threatens to become a resistance level from which the bears could push further. While an immediate climb back above the 24,000-point mark could restore optimism, the crucial question remains: Who or what is supposed to deliver the necessary positive impulse for such a development? Without external impetus, the path downwards appears more likely before the traditional year-end rally.
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