Resistance Broken: DAX Fights Its Way Up – Year-End Sprint in Sight
The DAX has signaled a clear path to recovery. The German leading index closed on Thursday with a strong performance of 1.11 percent at 23,726.22 points. What had been hinted at on Wednesday continued: investors utilized the still favorable valuations of DAX stocks and drove the index higher. With the 24,000 mark once again within reach, the tide in the DAX appears to have turned.
Hope for Peace in Ukraine Conflict Fuels Markets Before Thanksgiving
Just before Thanksgiving, US markets also posted significant gains, further boosting European exchanges. Market participants are celebrating the positive signals in the peace negotiations in the Ukraine conflict. According to the US government, only a few points still require clarification before both parties will be called to direct negotiations. The US is thus keeping the pressure high for quick results, providing further arguments for optimistic investment.
Among individual stocks, financial titles dominated: Commerzbank stock led the way with a price gain of 5.8 percent, ahead of Siemens Energy (5.0 percent). Infineon came in third with a positive performance of 3.7 percent. Siemens Energy shares are thus on the verge of a new all-time high, which could be reached this week.
Seasonal Indicators and Technicals Point to DAX Turbo
Based on seasonality analysis, the DAX is poised for a further jump upward. In addition to the seasonally positive December, the Thanksgiving weekend is approaching in the US. Over the last 10 years, stock markets have consistently entered the year-end sprint positively after this holiday weekend. Furthermore, December has historically closed positively in 68 percent of cases over the past 20 years (average return: 1.3 percent). The combination of a technical breakthrough and strong seasonality argues for a continuation of the upward movement.
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