Will the DAX Start the Week with a Buy Signal? Rally Hopes Revived!
The DAX ended the previous trading week on a conciliatory note, following its familiar pattern: after a negative Thursday, Friday closed positively. With a gain of 0.87 percent, closing at 23,739.47 points, the German blue-chip index is starting the week poised right below the critical 23,800-point mark. A sustainable breakout could place the DAX in an excellent position for a typical year-end rally. However, investors are cautiously eyeing the current trading range, which the index must first overcome to send a clear buy signal.
DAX Stability Needed: When Will the 24,000 Mark Fall?
Despite the positive sentiment, the DAX is still trailing the sell-off from September 2, 2025, and continues to struggle to target the psychologically important 24,000-point mark. The challenge this week is to further stabilize the index to prevent another slide. The much-needed impetus could come from upcoming economic data: EU inflation figures are due on Wednesday, followed by the highly anticipated US labor market data next Friday.
Reinsurers Shine – MTU on Turnaround Course
Among individual stocks on Friday, defensive insurers dominated. Munich Re stock shone with a gain of 3.9 percent, while Allianz climbed 2.5 percent. Third place went to MTU Aero Engines, which recorded a value increase of 2.4 percent. After correcting to the floor of its trading range near 360 euros, MTU stock has resumed its upward direction and could now attempt to re-test its previous high around 388 euros.
Optimistic Outlook: Data as Rally Fuel
The outlook for the new week is cautiously optimistic. The positive weekly close provides a good foundation. Should the upcoming inflation data continue to signal an accommodative monetary policy from the US Federal Reserve—possibly supported by weak US labor market data—this could provide the stock markets with the necessary fuel for a positive move towards all-time highs.
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