The German blue-chip index has once again recorded a positive Tuesday. The DAX gained 0.57 percent, closing at 23,880.72 points. The market is sending this positive signal despite the reality of a Government Shutdown in the US, triggered by the failure of Republicans and Democrats to agree on a budget. This has reduced the functioning of the US government to essential services only. For many investors, the question is whether the DAX can maintain this relative strength, or if the political turmoil in Washington will soon spread to European sentiment.
Are Data Delays Looming? The Fallout of the Shutdown
The US Shutdown could have a direct impact on market transparency. It remains uncertain whether key government publications, such as the highly anticipated US labor market data on Friday, can be released on schedule. A delay in these macroeconomic figures would render the market "blind" for several days regarding data from US government agencies, making decision-making difficult for investors. The same could apply to the closely watched COT data (Commitment of Traders), which reflects positioning in the futures and options markets.
MTU Ignites the Turbo: All-Time High in Sight
Among individual stocks, MTU Aero Engines became the day's winner. With an impressive performance of 4.6 percent, the stock soared to the top of the DAX. Scout24 (+2.1 percent) and the GEA Group (+2.0 percent) also showed strength. The MTU stock is now attempting a breakout above its all-time high, targeting the 400-euro mark. This surge is supported by UBS analysts, who speculate that the company may revise its annual targets upward.
Will the DAX Break the September High?
Overall, the DAX is likely to attempt an attack on its September high of over 23,900 points today, Wednesday. Since the US Shutdown was anticipated for some time, making it a "known risk," market participants were largely unfazed. This may set the stage for another positive trading day, moving the DAX closer to achieving a sustained breakout.
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