A Positive DAX Quake: Historic 25,000-Point Barrier Shattered
The champagne corks are popping on the Frankfurt floor: the German leading index has made history. In an impressive display of strength, the DAX shattered the magical 25,000-point barrier. For the first time in its history, the index closed above the 25,000 mark at 25,122.26 points, gaining 0.92 percent compared to the previous day. This milestone underlines the index's current dominance and leaves the psychological hurdles of the past weeks firmly in the rearview mirror.
Rate Hopes Fuel the Fire: Data Deluge from the Eurozone and USA
Economic data released on Wednesday acted as an accelerant for positive market expectations. Both the labor market data and Eurozone inflation figures suggest no immediate risk of a hawkish reversal in interest rate policy. On the contrary, expectations for further rate cuts in the USA have been heavily reinforced.
However, the question remains: is this breakthrough sustainable, or merely a brief, one-day overshoot? The investor community seems more relaxed than it has been in a long time; the Volatility Index (VDAX), currently sitting at a rare low of 15 points, reflects significant complacency. Hardly any investor or trader seems prepared for the possibility of a swift reversal. As the saying goes: pride comes before a fall.
The Day of "Curing": Will Profit-Taking Strike Today?
Thursday is set to be a day of "market curing," testing whether the new levels can hold. Industrial orders were reported at 8:00 AM, followed by labor market data and producer prices from the Eurozone at 11:00 AM. The most critical pulse check follows at 2:30 PM CET with the US Initial Jobless Claims. Any of these data points could tempt market participants into quick profit-taking, catching the bulls off guard.
Beyond the indices, Siemens remains a major focal point for investors. Following the announcement of a strategic AI cooperation with Nvidia, interest in the stock has surged.
In summary, today is all about stability. Investors are watching closely to see if capital remains in the market or if the New Year's rally needs to pause at the 25,100 level. Since the DAX is still considered "cheap" compared to the S&P 500, institutional investors might view any pullbacks today as a prime buying opportunity.
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