Mixed Signals on Weekly Open: DAX Remains Reserved – US Markets Roar
The start of the week for the DAX was more subdued compared to its international peers. While US markets were booming with gains from 1.2 percent (S&P 500) to 1.9 percent (NASDAQ), the German leading index only managed a modest gain of 0.28 percent on Monday. Even the Dow Jones (+0.7 percent) overshadowed the DAX. This is surprising, as the easing of the US-China trade dispute should have played into the hands of German export values—a piece of information that, given the looming chip crisis (which has already sparked discussions about production halts at VW), should have been met with more euphoria. The current caution likely stems from the enormous anticipation ahead of the ECB and Federal Reserve decisions this week.
Infineon Benefits from Trade Détente – Continental Remains Furious
The stock of chip giant Infineon benefited the most from the slight de-escalation between the US and China on Monday, securing the top spot with a gain of 2.4 percent. It was closely followed by Continental, which underlined its current momentum with a further 1.4 percent gain. The automotive supplier has exceeded expectations with its strong performance and already shows a month-to-date gain of over 14 percent.
DAX Pushing Against Resistance: Is a Breakout Imminent Before Rate Decisions?
From a technical chart perspective, the DAX is still located in the middle of its large trading range. However, within a subordinated structure, it is vehemently pushing against a short-term resistance level at around 24,360 points. Should this resistance be broken, it could give the DAX a crucial boost even before the central bank meetings. If this resistance holds, it is likely that the lower boundary of this short-term structure, near 24,000 points, could be tested again.
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