DAX Holds the High Ground: A Hovering Act Just Below 25,000
One thing is already significantly different this trading week compared to the last: the quality of the price action. Although the leading index closed Tuesday just below the magic 25,000-point mark, finishing at 24,987.85 points, its relative strength is impressive. Following Monday's strong performance, the DAX remained stable at an elevated level—a clear sign that the recent recovery is built on firmer ground.
Retail Stagnates, but the Focus Shifts to Labor Data
While the Dow Jones continued its record-breaking run, the DAX didn't quite keep pace but certainly didn't buckle either, unlike the US tech-heavy NASDAQ, which saw some weakness on Tuesday. Economic data from the US was somewhat sobering: Retail Sales for December came in virtually unchanged (0.0%), missing the forecast of a 0.4% increase.
However, this failed to spark major concern among investors, as the focus has already shifted to today, Wednesday. At 2:30 PM CET, the highly anticipated US Non-Farm Payrolls (delayed due to the recent government shutdown) will be released. This labor market report is a top-tier indicator that the Federal Reserve scrutinizes heavily when calibrating its interest rate path for 2026.
Zalando Sprints Ahead – Siemens Energy Corrects Before Results
On the individual stock level, Zalando stole the spotlight on Tuesday. Surging by 3.9%, the stock flashed a powerful sign of life, bolstered by positive analyst sentiment. Nevertheless, a word of caution is necessary: Zalando remains technically trapped in a long-term downward trend, and a true turnaround still requires further confirmation.
On the flip side, Siemens Energy shares slipped by roughly 3.8%, ending at the bottom of the DAX. After its recent massive rally to all-time highs, investors opted to take some profits off the table ahead of the quarterly results due today. Expect high drama here, as earnings expectations for the energy giant are sky-high.
Technical Summary: A Shallow Consolidation as a Launchpad?
From a technical perspective, Tuesday can be interpreted as a healthy "breather." The chart shows a shallow consolidation, which often serves as a period for the bulls to gather strength before the next breakout attempt. Today’s major news event at the US labor market possesses the economic weight to provide the necessary impulse for a journey toward new record highs.
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