The DAX Under Pressure
The DAX, the German benchmark index, experienced a significant correction on Tuesday, June 10, 2025, falling below the 24,000-point mark. This decline of about 0.8% to 23,988 points indicates a phase of consolidation after the index had reached several record highs in recent months.
Background and Causes
- Trade Talks Between the USA and China: A key factor in the uncertainty in the markets is the ongoing trade talks between the USA and China. These discussions, taking place in London, aim to ease the tariff conflict between the two economic powerhouses. Investors are watching these developments closely as they can have significant impacts on the global economy.
- Decline in Defense Stocks: The decline of the DAX was also intensified by sharp losses in defense stocks. This sector is particularly vulnerable to political and economic uncertainties, which is reflected in the recent price declines.
- Seasonality and Technical Hurdles: The DAX had reached an all-time high of 24,479 points the previous week, but the zone between 24,300 and 24,400 points proved to be a stubborn barrier. Additionally, the negative seasonality from mid-June calls for caution, contributing to the consolidation.
Impact on Investors
The decline of the DAX below the 24,000 mark has significant implications for private investors and savers. Many investors take advantage of such consolidation phases to review and potentially adjust their portfolios. The uncertainty stemming from the trade talks and seasonal weakness could lead to a more cautious investment strategy.
MDAX Development
The MDAX, the index for medium-sized German companies, also retreated, falling by 1.05% to 30,548.82 points. This indicates that the consolidation is not limited to large companies but also affects medium-sized enterprises.
Overall, the decline of the DAX indicates a phase of consolidation driven by a combination of political, economic, and seasonal factors. Investors should monitor these developments closely and adjust their investment strategies accordingly.