What a furious opening week! Over the past few days, the German leading index has impressively proven that it is a force to be reckoned with in the 2026 stock market year. Despite all the doomsaying, the pessimists were once again proven wrong. The combination of a fundamental undervaluation of German quality stocks and increasingly positive economic prospects is acting like a super-fuel on the trading floor, causing records to tumble with a frequency that surprises even optimists.
25,261 Points: The New Comfort Zone Above the Barrier
The DAX bid farewell to the week on Friday with a solid gain of 0.53 percent, closing at 25,261.46 points. It almost seems as if the index has already settled in comfortably above the prestigious 25,000-point mark. The next milestone is already clearly defined: 25,500 points.
The breadth of the upswing on Friday was particularly noteworthy. While heavyweights from defense and tech often dominated in previous days, defensive stocks and service providers showed their strong side at the end of the week:
Beiersdorf: Day's winner with a gain of 2.2 percent.
Brenntag: Strong performance of 1.7 percent, taking second place.
Scout24: Reached the third podium spot with a 1.6 percent increase.
Earnings Season Danger Zone: US Inflation in Focus
Naturally, despite all the euphoria, the question of sustainability arises. Such a steep rally cannot continue forever without a breather. However, analysts distinguish strictly here: a healthy market correction to clear overbought conditions is possible at any time—but a slide into a bear market is considered extremely unlikely given the current liquidity situation.
Things get serious in the coming week. Investors will be watching the US inflation data on Wednesday (January 14) with bated breath. These figures will be decisive in determining whether hopes for further Fed rate cuts remain justified. Simultaneously, major US banks like JPMorgan Chase will traditionally kick off the new Earnings Season on Tuesday, January 13. These quarterly results will serve as a barometer for the global economic condition.
Technical Summary: The Trend is Your Friend
From a technical perspective, the DAX looks extremely robust. With the strong weekly close at its back, there is a high probability that the journey northward will continue immediately. Nevertheless, investors should remain vigilant after this "New Year's sprint": profit-taking can set in at any time and could mark the starting point of a long-overdue, brief correction. Those already invested should trail their stop-loss orders; those looking to enter may want to wait for the next pullback.
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