Monday Fireworks: DAX Launches Attack on the 25,000-Point Mark
The German leading index has kicked off the new trading week with a spectacular performance. Although the index dipped briefly at the market open, it turned out to be nothing more than a quick breather before an impressive rally. By the end of the session, the market barometer recorded a solid gain of 1.05%, closing Xetra trading at 24,797.52 points. This move brings the prestigious psychological hurdle of 25,000 points back into immediate striking distance.
The Warsh Dilemma: Fed Personnel Shake-up Sparks Debate
This friendly trend on Monday was supported by positive voting data from the US, while the massive price collapse in the precious metals markets for gold and silver failed to act as a significant drag. Instead, investors' eyes are fixed on a groundbreaking personnel move in Washington: the nomination of former Fed Governor Kevin Warsh to succeed Jerome Powell is fueling intense discussion. The market currently doubts whether a Fed under Warsh's leadership will maintain a loose monetary policy. This high-stakes "personnel gambit" likely caught some market participants off guard, leading to a reassessment of long-term interest rate expectations.
Hannover Re at the Top: A Strong Collective Carries the Index
The DAX leaderboard showed an unusually balanced picture to start the week. Interestingly, the more defensive Hannover Re secured the top spot in the daily rankings with a gain of 0.98%. The fact that even the day's winner could not outperform the overall index underscores the remarkable breadth of the current upward move—nearly the entire field of DAX stocks was in a buying mood.
A Technical Breakout with Political Tailwinds?
From a technical perspective, Monday may have marked the long-awaited breakout. The exciting question remains whether investors now have the courage to dive back into DAX stocks with full force. Additional momentum is coming from domestic politics: Chancellor Friedrich Merz recently announced a comprehensive, capital-funded pension reform. Such a move could channel significant capital flows into the equity market in the medium to long term, providing a sustainable pillar of support for the DAX.
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.