The DAX has had a difficult trading week, marked by geopolitical tensions and economic uncertainties. The quotes moved around the 24,000 mark last week, with a low point below 23,900 points. The index closed the week at around 24,030 points.
Economic Developments
Inflation and Interest Rate Cuts
The inflation rate in Germany stands at 2.1%, which is just above the target rate of the European Central Bank (ECB). This could lead the ECB to further lower the key interest rate, which could have a positive effect on the stock market.
Geopolitical Tensions
Geopolitical developments, especially trade conflicts, can influence the market. These uncertainties could lead to volatility in the DAX.
Technical Analysis
Supports: Important support levels for the DAX are around 24,139 (SMA50), 24,040, 23,955, and 23,826 points.
Resistances: The DAX has reached a record high of 24,325/346 points. Further resistances are at 24,476 and 24,540 points.
Companies in Focus
Münchener Rück: As one of the largest insurance companies in Germany, Münchener Rück could benefit from or be influenced by economic developments. The insurance sector is often less volatile than other sectors, making it a stable component of the DAX.
Forecast for the New Trading Week
The coming week could be shaped by the ECB meeting and geopolitical developments. If the DAX remains below 24,350 points, there could be further pullbacks. On the other hand, a rate cut by the ECB could support the market. The technical supports and resistances will be crucial in predicting the direction of the DAX in the new week.