The DAX is currently at a record level, having reached a new all-time high due to the interest rate decision of the European Central Bank (ECB). Last Thursday, the German leading index was recorded at 24,479.42 points in intraday trading and closed at 24,323.58 points – both new highs.
The Consolidation Phase After the All-Time High
However, on Whit Monday, a certain consolidation was evident: The index remained at its high level and hardly moved. At the beginning of holiday trading, the DAX slightly declined and was about 0.2 percent below the previous day’s close at around 24,252 to 24,260 points. Even an hour before the trading began, the X-DAX signaled a decrease of about 0.1 percent to values between 24,275 and 24,282 points.
Reasons for the Current Market Situation
- ECB Interest Rate Decision: The ECB’s monetary policy decision had recently provided an updraft, driving the DAX to record levels.
- US Employment Report: Wall Street reacted positively to the US employment report, which also temporarily supported European markets.
- Asian Markets: In Asia, gainers predominated, but this only provided limited impulses for Europe.
- Quiet Trading Due to Holiday: On Whit Monday, trading volume was lower than usual; many market participants held back.
Conclusion on the Current Situation
Although the DAX remains very high – with an annual gain of almost 23 percent – the rally pace seems to have slowed down. New impulses are lacking: Neither positive news from overseas nor political announcements have been able to give the index another boost or break the consolidation pattern.
The question “But is the air out?” can be answered this way: The DAX remains close to its highest values, but without new positive surprises or fundamental impulses, it is likely to be difficult to continue significantly rising – at least in the short term, trading will remain sideways in a calm atmosphere.