Spectacular Comeback: DAX Smashes the 23,000 Sound Barrier After Hours!
An electrifying trading day is behind us! The bulls have impressively announced their return to the Frankfurt trading floor. Although the German leading index ended regular Tuesday trading "only" with a solid gain of 0.52% at 22,680.04 points, the real fireworks went off after hours: The DAX forcefully broke through the psychologically crucial bastion of 23,000 points. An excellent omen for today, Wednesday! The anxious question on the trading floor now is: Are we merely experiencing a brief, bullish flash in the pan, or does this dynamic correction actually have what it takes to attack the prominent lower high of the downtrend at around 24,000 points? The geopolitical news landscape is currently playing into the buyers' hands. A further escalation in the war involving Iran is holding off for now, meaning the extremely high oil price is considered fully priced in. The global economy's focus is now pragmatically shifting toward restoring the massively disrupted logistics of black gold.
Industry & Tech Firing on All Cylinders: Siemens and Infineon Shine
At the individual stock level, it was the absolute heavyweights pulling the market upward on Tuesday. The undisputed frontrunner was Siemens AG, which shone with a hefty price jump of 2.9%. Right behind it, Infineon celebrated an impressive comeback. Buoyed by strong tailwinds from the U.S. technology market, the chip manufacturer executed a textbook bounce off its technical support and promptly rewarded investors with a gain of 2.5%. This strong trio was rounded out by Siemens Energy, which secured third place on the podium with a convincing performance of 2.4%.
Hour of Truth: U.S. Labor Market and the Funds' Billion-Dollar Merry-Go-Round
From a fundamental perspective, today, Wednesday, promises high tension. Following initial data from the Eurozone in the morning, all eyes will turn anxiously to the U.S. at 2:15 PM CET. The payroll provider ADP will release its directional labor market data. If the report comes in too robust, raw interest rate fears of a restrictive Fed threaten to return—a toxic impulse for the DAX. A weak figure, on the other hand, would be pure balm for the equity markets. This data showdown is flanked by the fresh start of April. The beginning of the new quarter forces many large funds to massively rebalance their portfolios. It is precisely this fresh influx of capital that could provide the decisive fuel today for the DAX to sustainably sink its teeth in above the saving 23,000-point mark.
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