The DAX started the week without direction, concluding Monday's trading session essentially flat. The index closed at 24,378.29 points, a near break-even day. Geopolitical attention remains focused on the highly anticipated potential Gaza deal. Any deviation from the expected gradual acceptance of the 20-point plan would surprise markets and could trigger volatility. Regarding monetary policy, investors are keenly awaiting the minutes from the latest Fed meeting, due out Wednesday evening. The market continues to heavily price in another US interest rate cut at the end of October; the minutes could provide crucial clues supporting this expectation. The DAX has moved closer to parity with US markets and is set to continue its journey towards its record high.
BMW Races Towards a Breakout – Reinsurers Gain Momentum
BMW stock captured investors' attention on Monday, shining with an impressive daily gain of 3.3 percent. Technically, the automotive stock faces an exciting setup: it appears poised for an immediate breakout above the 92-euro mark. Trailing closely behind were the two reinsurers, Hannover Re (+3.1 percent) and Munich Re (+2.6 percent). Both appear to have found their bottom and are developing promising, nascent uptrends.
A Pause Before the Jump: New DAX Record High Within Reach
Following Monday's moderate start, the DAX is expected to open positively today, Tuesday. The overall equity environment appears optimistic, and all-time highs in Asia could provide additional tailwind. Chart analysis suggests that the break-even Monday was merely a pause. This could serve as the ideal springboard to attack the all-time high later this trading week. Is the DAX about to reach its next historic milestone?
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