While US investors celebrated the start of the week with significant gains, the DAX remained remarkably subdued. It closed the day with a meager gain of just 0.21 percent at 23,748.86 points. This restraint is no coincidence; it reflects the caution of investors ahead of the highly anticipated interest rate decision by the US Federal Reserve (Fed). The key question for the market is whether the DAX is merely on standby, waiting for a major impulse, or if it's being held back by a fundamental weakness compared to the robust US markets. What's certain is that the German blue-chip index remains trapped in its well-established trading range, and the spark that's igniting US exchanges has yet to catch on here.
Bayer Struggles, Reinsurers Dominate
Among individual stocks, the two reinsurers in the DAX dominated on Tuesday. Shares of Hannover Re climbed 3.6 percent, while Munich Re gained 1.6 percent. E.ON secured third place with a 1.5 percent increase. At the other end of the spectrum, Bayer's stock continues to struggle to break the 30-euro mark without success. The previous day, the company was at the bottom of the German leading index with a 2.1 percent loss.
The Calm Before the Storm? The DAX Continues to Wait
A similar trading pattern is expected for today. Experts believe the DAX might try to catch up a bit before the Fed decision on Wednesday, but a decisive breakthrough is unlikely. Technically, the index remains stuck in its narrow and sluggish trading range. Therefore, investors should prepare for minimal movement until the Fed reveals its hand.
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