On Monday, the DAX had to trade without the guidance of US markets, as they were closed for Labor Day. The DAX moved back above 24,000 points without much fanfare and managed to close above that level. However, the German leading index couldn't build much strength at the start of the week, and investors are somewhat treading water. The key impulse is simply absent right now, so no one is willing to emerge from cover. When the US markets reopen on Tuesday, the tide could turn, as the first trading week of the new month will be dominated by US labor market data. These figures may provide new arguments for or against upcoming interest rate cuts in the US.
Rheinmetall & Co. Storm to the Top: Who's Defying the Caution?
Among individual stocks, Rheinmetall, Sartorius, and Commerzbank led the way. Rheinmetall shares rose by 3.5 percent, Sartorius gained 2.7 percent, and Commerzbank continued its uptrend with a 2.3 percent increase. At the other end of the spectrum were E.ON, Siemens Energy, and Deutsche Börse, which were the laggards of the first trading day of September.
Correction or All-Time High? The DAX at a Crossroads
On Tuesday, it will again be important for the DAX to hold above the 24,000-point mark. Historically, US markets tend to start strong after a holiday, which could give the German stock index a tailwind. From a technical perspective, the market continues to move within a trading range that is capped by the all-time high but also leaves room for a decline down to 23,350 points. The DAX is currently in the middle of this range, and both scenarios—a correction or a move to a new all-time high—are possible.
Which direction will the DAX take with the new data from the USA?
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