The DAX recently reached a new all-time high following the European Central Bank (ECB)’s interest rate decision, remaining at this record level on Whit Monday, while overall market movements stayed calm. This development is of particular interest to private investors as it presents both opportunities and risks.
Market Situation on Whit Monday
- Record Level: Last Thursday, the DAX reached new highs of 24,479 points (intraday) and a closing price of 24,323 points.
- Slight Losses: On Whit Monday, the index declined slightly, at times dipping by 0.6 percent to about 24,153 points. However, the losses remained moderate.
- Cautious Trading: Due to the holiday, trading volume was low, and movements were restrained.
Influencing Factors
- ECB Interest Rate Decision: The ECB’s decision has significantly boosted the DAX, driving it to a new all-time high.
- US Labor Market Report: Wall Street reacted positively to Friday’s US labor market report, but this only had a short-term effect on European indices.
- Asian Markets: In Asia, there were more winners in the morning, but this did not provide a strong impulse for Europe.
Sectoral Developments
- Defense Industry Under Pressure: Rheinmetall was the biggest loser in the DAX in early trading, down by up to 2.3 percent. Other defense stocks like Hensoldt (MDax) also lost significant value, while Renk only saw minimal losses.
- MDax & EuroStoxx 50: The MDax also dipped slightly (-0.5%), while the EuroStoxx 50 lost a maximum of -0.1% – overall a calm market situation without large fluctuations.
Importance for Private Investors
Private investors face an ambivalent situation:
- Opportunities from High Valuations: The record level offers potentially attractive returns with further rising prices.
- Risk of Consolidation or Correction: After strong rises, there is always the risk of a short-term consolidation or decline – especially when there is no new momentum.
- Low Trading Volumes on Holidays May Increase Volatility, even if currently there is more calm.
Conclusion
While the DAX remains at record levels, the momentum noticeably decreases: There are hardly any new impulses from the central bank or other macroeconomic factors. For private investors, this means increased caution with further investments in the German leading index – particularly in light of potential overheating signals and the lack of strong drivers for further price increases in the near future.