Christmas Rally Stalled: DAX Struggles with 24,000 Mark – Will the Turbo Finally Ignite?
The engine of the traditional Christmas rally is stuttering badly: On Tuesday, the DAX once again lacked the necessary fuel to launch the hoped-for surge toward new record highs. Instead, the German leading index recorded further losses, ending the trading day down 0.63 percent at 24,067.87 points. Investors and traders continue to wait in vain for a spark to pull the market out of its lethargy. The wait for the "Santa Claus effect" is becoming a true test of patience.
Contradictory Economic Data: US Rate Hopes vs. German Structural Crisis
The current situation is complex: neither the latest US labor market data nor the global Purchasing Managers' Indices (PMI) were able to boost the DAX. While the US data indicates a likely further decline in interest rates for 2026—theoretically a bullish sign for stocks—the PMIs relentlessly reflect a negative economic mood.
Even at record-breaking levels, market participants can no longer ignore the structural problems of the German economy. Investing currently feels like "driving with the handbrake on." Concerns about Germany's competitiveness as a business location are weighing more heavily than the hope for cheap money from overseas.
ifo Business Climate in Focus: Last Chance for DAX Fuel?
Today, Wednesday, at 10:00 AM, the financial world will be watching closely as the ifo Business Climate Index is released. This is considered the most important barometer for the German economy. Expectations are subdued; analysts anticipate stabilization at a low level. Nevertheless, even a minimal positive surprise could provide the urgently needed fuel to push the leading index upward again.
Among individual stocks, Fresenius took the biggest hit yesterday. The stock was 2.2 percent lighter by the close of trading. Despite the setback, analysts remain optimistic: many experts maintain an "Overweight" rating and see price targets of up to 58 euros, which could indicate a significant undervaluation in the medium term.
DAX Lying in Wait: Will the Psychological Bastion Fall?
Technically, the DAX is in a classic "wait-and-see" position. The crucial question is: will the index stay above the psychologically important 24,000-point mark? The buying pressure seen yesterday just above this threshold offers hope that the support will hold. However, if the DAX surrenders this bastion, a wave of selling looms. To save the Christmas rally, the bulls must ignite the turbo now—time is running out before the turn of the year.
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.