The DAX once again demonstrated its resilience in the past trading week. Following the Israeli attack on Iran, the German leading index only experienced a moderate decline of just over 6 percent. The subsequent announcement of a ceasefire restored investor confidence, so this trading week is expected to conclude with a positive trend, thus ending the two-week downturn.
This development could mark the starting signal for a further upward movement in the DAX, especially since July is statistically one of the year's strongest stock market months. This expectation is further supported by the new Chancellor Friedrich Merz's foreign policy approach. He's successfully maneuvering Germany back into a significant and recognized position within Europe and global politics. Stock markets seem to be acknowledging this development, which is reflected in the recent DAX price movements. Yesterday's closing price on Thursday was 23,649.30 points, representing a daily gain of 0.64 percent.
Individual Stocks: Rheinmetall Continues Its Upward Trend
Among individual stocks, Rheinmetall shares continued their dynamic upward trend. With a daily gain of 7.3 percent, the company was the undisputed leader in yesterday's daily ranking. Qiagen and Airbus shares followed in second and third place with positive performances of 2.7 and 2.6 percent, respectively. In contrast, Adidas shares lost ground yesterday, closing the trading day with a minus of 2.5 percent. The German sporting goods manufacturer currently seems unable to convince the market and continues to face challenges.
Outlook for the DAX
Despite the continued tension in the Middle East and conflicting information regarding the bombardment's effects, it appears that diplomacy is regaining the upper hand, and stock markets can recover. Positive signals from the USA reinforce this assumption, leading investors to look optimistically towards July.
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