DAX Continues Upward Trend: Bulls Defy Structural Concerns
The German stock index was convincing again on Tuesday, closing the trading day positively. Investors celebrated a price gain of 0.55 percent, which brought the DAX to 24,088 points, closing above the crucial 24,000 mark once more. Although the trading day was turbulent, with the index briefly losing 24,000 points in the morning due to a sell-off, a reversal occurred in the afternoon alongside strong US markets. The bulls even unleashed themselves in after-hours trading, pushing the index further up.
Wobbly Rally: Fundamental Problems vs. Price Euphoria
Despite the short-term strength, caution remains advised for the DAX. The fundamental impulses needed to sustainably drive the index upward are absent. On the contrary: reports are increasing about structural problems in key industries that could lead to severe job losses and plunge entire sectors into crisis. Gross Domestic Product has stagnated for the third consecutive quarter. Without concrete structural reforms being addressed, genuine optimism is difficult to spread. The impending year-end rally is therefore still standing on shaky ground.
Bayer Strong, Eyeing Annual High – Adidas and Merck Follow
Among individual stocks on Tuesday, Bayer stock was ahead with a performance of 3.5 percent. It was closely followed by Adidas (+2.9 percent) and Merck (+2.6 percent). Bayer thus confirmed the end of its correction and is positioning itself to generate another annual high. The stock could potentially cross the 30-euro mark again by the end of the year.
DAX: Momentum Test in the Morning – Chance for a Third Winning Day
If investors and traders manage to transfer the strong momentum from after-hours trading into Wednesday, a third consecutive day of gains could occur. Since the market is likely to open with a gap up, it is also expected that the morning will be characterized by profit-taking before a potential reversal occurs in the afternoon.
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