DAX Trades Stably at All-Time High – Will More Records Follow?
On Friday, the DAX traded relatively stably at its all-time high. Investors are hoping for further records in the upcoming trading week. The U.S. labor market data reported on Friday was slightly better than expected and therefore couldn't provide significant impulses to the stock markets. The market is waiting for the Federal Reserve to finally initiate further interest rate cuts, which would provide new momentum. The problem is the persistently stable labor market, which gives the Federal Reserve no urgency in this regard. However, U.S. stock markets reacted very calmly, closing Friday with a gain of over 1.03 percent in the S&P 500. Signs in the S&P continue to point to buying, which is also a positive sign for the German stock index, allowing investors to be confident about new records.
DHL Stock with a Strong Sprint Towards Annual High
On Friday, Hannover Re shares were up 1.7 percent, DHL (Deutsche Post) shares gained 1.2 percent, and Deutsche Börse was up 1.1 percent, making them the top 3 performers in the DAX. DHL shares have recovered very well since their low of around 33 euros in early April and are now marching towards their annual high of around 44 euros.
Euro Indicates Intrinsic Strength
On Friday, the euro had to give ground, trading briefly below 1.13 US dollars. With the start of the new trading week, the euro climbed back above 1.14 US dollars, and it looks very much like the European single currency could continue to establish itself above 1.14 US dollars. Interest rate cuts in the U.S. seem to be only a matter of time due to fundamental data and could put further pressure on the dollar, indicating further growth potential for the euro, even though the ECB itself lowered its key interest rate again last trading week. This speaks to an intrinsic strength in the euro.
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.