Breakthrough Achieved: DAX Above 24,000 Points – Will the Christmas Rally Ignite Now?
The DAX achieved the decisive breakthrough on Friday: The index knew virtually only one direction, surging straight past the 24,000-point mark to close the trading day with a gain of 0.68 percent at 24,028.14 points. With this upward momentum, stock markets are eagerly anticipating the US interest rate decision on Wednesday, pricing in a potential rate cut with great confidence.
Powell's Balancing Act: Will the Fed Meet High Market Expectations?
The big question looming over the markets is: Will the Federal Reserve cut interest rates again? The expectation of a rate cut is by no means guaranteed, as US inflation remains persistent. However, investors draw hope from the increasingly weakening labor market. Fed Chairman Jerome Powell and his team face a complex balancing act, as inflation and the labor market are currently developing divergently. The decision will be crucial in determining whether the DAX's journey can continue past 24,000 points toward a record high.
Industrial Production Surprises: A Glimmer of Hope for Germany
Positive news comes from German industry: Industrial production rose slightly by 1.8 percent in October and shows a small year-on-year gain of 0.8 percent for the first time in a while. In September, production had shrunk by 1.4 percent year-on-year. This could be a small glimmer of hope for the still contracting German economy. Furthermore, data on Sentix Investor Confidence will be released at 10:30 AM this morning – this will show whether investors remain pessimistic or if sentiment is already brightening.
DAX: Next Hurdle at 24,150 Points in Sight
Technically, the DAX landed a clear breakthrough with the closing price above the 100-day moving average and the 24,000 mark. The next significant resistance zone is likely to await the index at 24,150 points, before the path towards 24,500 would be largely open. On the downside, Friday's low at around 23,900 points serves as the first support and should secure the upward impulse.
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