market report
At the start of the new week, the DAX is trying to recover. This follows a positive closing trend in the US stock market on Friday.
DAX started the new week with enthusiasm. With a current increase of 1.6 percent, Germany’s main index is up more than 23,900 points in early XETRA trading and thus targeting the round number of 24,000 points again.
This means that chart support in the area of 23,500 points seems to be holding back and slowing down a more significant correction. On Friday, the DAX temporarily fell to 23,452 points before price losses narrowed somewhat. MDAX middle stocks are also currently up around 1.5 percent.
“In terms of chart technology, the basis for a new rally in the DAX has been set,” wrote capital markets strategist Jürgen Molnar of broker RoboMarkets. “If the year-end rally was still on the verge of last week, then the starting point would be today. The winds in the stock market can change that quickly.”
The impetus for markets came from Washington politics, where a deal between Democrats and Republicans in the US budget dispute was at least in sight. On Sunday evening (local time), the Senate voted with Democratic votes to discuss the transition budget from the House of Representatives. This means that the first important hurdle in parliament has been overcome.
The recent gridlock has put further pressure on the market. Just on Friday, flight operations in the US were reduced to ease the burden on air traffic controllers who had not received salaries for weeks.
Speculation that the US budget dispute would soon end pushed Asian stock markets higher at the start of this week. The Tokyo Nikkei index, which includes 225 scores, rose 1.3 percent to 50,912 points today. The broader Topix index rose half a percent to 3,317 points.
The Shanghai stock exchange and indexes of the most important companies in Shanghai and Shenzhen also rose about half a percent each.
There were also signs of a positive trading day on US stock markets. Wall Street’s early futures are all up. Indices have recovered in the second half of the session on Friday, with the leading Dow Jones index even closing slightly higher.
Overall, Wall Street is currently concerned with the question of whether the high valuations of AI heavyweights are justified. Recently, doubts have arisen regarding the cause of the price decline. The possible end of the government shutdown will also provide a strong boost to US markets.
Jefferies expert Lucas Ferhani drew attention to Siemens Energy with a relatively high price target of 134 euros. The urgency of network expansion faced by network operators and energy suppliers in Europe and America is causing high prices to be paid by energy technology providers. Therefore, many stock market investors still underestimate Siemens Energy’s margin potential. The shares are up more than four percent and are at the top of the DAX.
At the beginning of this week, Hannover Re reassured investors with the latest business developments and prospects. Recently, securities listed on the DAX rose two percent.
The world’s third-largest reinsurer expects bigger profits this year than initially expected, despite devastating wildfires in California. Thanks to a disaster-free summer, the surplus is expected to reach around 2.6 billion euros, 200 million more than previously announced. Next year it must reach at least 2.7 billion euros.
The surplus in the third quarter was above market expectations and with estimates rising, the group also beat expectations, wrote analyst Philip Kett of investment house Jefferies. Hannover Re’s results and forecasts are likely to be received positively by the market.
