DAX in Wait-and-See Mode: Light Gains, but the Foundation Remains Shaky
Thursday on the Frankfurt floor was characterized by a day of cautious stabilization. While the DAX managed to close the session with a slight gain, there was little sign of the grand euphoria returning. The current correction phase remains active, and market participants seem to have settled into a "wait-and-see" posture. The big question remains whether investors will bid farewell to the week with a conciliatory finish this Friday or if uncertainty will prevail.
Geopolitical Poker: Are the Risks Already Priced In?
An almost eerie calm persists in the DAX. Neither the mixed balance sheets of major US banks nor the optimistic outlook from chip giant TSMC could provide the index with significant momentum. Furthermore, markets are reacting with surprising composure to geopolitical tensions: discussions regarding a potential US annexation of Greenland and the looming threat of US intervention in Iran are being largely ignored for now. Market observers are growing concerned, questioning whether serious political or military escalations are reflected in current prices at all—or if a rude awakening lies ahead.
SAP Under Pressure – Merck Shines as a Rock in the Surf
Regarding individual stocks, the heavyweight SAP moved negatively into the spotlight on Thursday. The stock slipped by 1.3 percent, making it the biggest daily loser in the DAX. Analyst downgrades and lowered price targets continue to weigh on the share, preventing a solid floor from forming. A completely different picture emerged for Merck: the stock confidently secured the top spot on the DAX list with a gain of 2.2 percent, acting as a safe haven in a volatile environment.
Friday Showdown: Inflation Data and US Economy in the Crosshairs
Today, Friday, promises plenty of movement. At 8:00 AM, the latest inflation data from Germany was released—figures of crucial importance for the ECB's interest rate policy. In the afternoon, the action shifts back to the USA: at 3:15 PM, reports on industrial production and capacity utilization will be released, followed by the US Housing Market Index at 4:00 PM. If these data points disappoint, the DAX—which already weakened slightly in after-hours trading—could end the week on a sour note.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.