Thanks to Merz fail- DAX Misses All-Time High Again
Newly elected Federal Chancellor Friedrich Merz, in the historically second round of voting, received a historic rebuke even before taking office. This did not go unnoticed by the German stock market, which reacted to the missed first-round election with volatility that subsided by the end of the day. Nevertheless, the DAX had to close in the red on its record attempt day, before the Fed, following the political embarrassment, could finally push the DAX towards a new record on Wednesday.
What needs to happen for the stock markets to continue their pursuit of higher prices after the Fed decision? The financial market currently expects no interest rate hike and is taking a rather conservative stance. This means that a dovish surprise from the Fed would be an impulse that stock markets would certainly welcome. This is precisely the impulse that the DAX currently lacks to reach a new all-time high.
E.On Continues Strong Upward Trend
Fresenius, Continental, and E.On were the top performers in the DAX on Tuesday. Particular attention is paid to E.On's stock. Quietly and steadily, the utility stock has climbed to second place in the DAX performance rankings when looking back three months. Investors and shareholders of this stock have profited with a return of over 30 percent.
The DAX is expected to be somewhat calmer today, Wednesday, until the evening. Investor and trader tension is likely too high regarding what the Fed will do. After all, it is on the US President's agenda that he would like to see Jerome Powell replaced, as the Fed Chairman acts independently and not according to the US President's desire to weaken the US dollar. It will also be interesting to observe how the US President will react to the Fed's decision. This tweet is likely to contain significant volatility.
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