Priced-In Hopes: DAX Starts the Week Mildly – China Conflict Slows Recovery
The DAX started the new trading week moderately. While the leading index managed to halt Friday's sharp sell-off and recorded a slight gain of 0.38 percent, the underlying tensions appear unresolved. The anticipated relief from the release of hostages and the supposed end of the Gaza war had no further noticeable impact on the markets—the breakthrough was already priced in. Instead, the market is now focusing on the persistently strained trade relations between the US and China. The fear is a continuing spiral of escalating trade policy steps, which unsettles investors. Trading is further constrained by the imminent start of the "Earnings Season" in the financial sector, as investors await the release of quarterly results.
Siemens Energy Near Record Breakout – Infineon Recovers Ground
Despite the reserved market mood, some individual stocks showed strength. Siemens Energy shares started the week well with another gain of 2.4 percent. The stock has established itself solidly above the 100-euro mark and could be poised for another breakout to a new record high. Fresenius Medical Care (+2.2 percent) and the previously battered Infineon stock also started the week positively. Infineon gained 1.8 percent but technically remains in a downtrend.
DAX at a Crossroads: Is a Correction Still Imminent?
Caution remains advisable for the DAX in the coming trading days. The sentiment of retail investors is currently shifting strongly toward buying. Historically, this can be an early warning sign that the market is due for another sell-off, as the crowd is often positioned incorrectly. However, it is also possible that this is merely a technical reaction to Friday's impulsive sell-off. The positioning of professional investors in this intriguing phase will dictate the direction.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.