DAX Starts New Trading Week Hesitantly and Without Conviction
Monday did not ignite the Christmas rally for the DAX. The German leading index started the new trading week cautiously. Investors operated with the brakes on and watched in after-hours trading as the painstakingly built-up performance collapsed again. The market remains in a holding pattern ahead of the crucial interest rate decision.
ThyssenKrupp Opens Books – Volatility Expected
Minimal major movements are expected ahead of the Federal Reserve meeting on Wednesday. Statistically, the index tends to rise more often than it falls before this important decision. Attention today is likely to focus on ThyssenKrupp stock, which is publishing its figures pre-market this morning and holding a press conference at 10 AM CET. The release of the German trade balance could also play a role today. Growth is expected; however, a failure to meet expectations could generate volatility.
Rheinmetall Stock Attempts Turnaround
Among individual stocks, Rheinmetall stock topped the DAX list yesterday. The stock gained 4 percent, making it the unchallenged daily winner. In second and third place were shares of Airbus and Allianz, both with a performance of 0.9 percent. Rheinmetall stock is now attempting to correct and, ideally, reverse its recent downtrend, having lost 7.7 percent over the past six months.
DAX Tame Ahead of Fed Decision
Technically, the DAX remains above 24,000 points but failed to surpass Friday's high. This mark will, in all likelihood, be key again today. Should the DAX manage to convincingly overcome this level, further upside potential might be available before the Fed meeting. Otherwise, the market will likely remain stuck in an anticipating, low-volatility range ahead of the rate decision.
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