The DAX failed to carry last week's momentum into the new trading week, starting with a noticeable setback. With a loss of 0.48 percent, the German blue-chip index remains stuck at 23,527.05 points. The US Federal Reserve's interest rate cut seems to have lost its short-term impact. Currently, the DAX lacks the power for a decisive breakout. This could increase investor nervousness and lead to further profit-taking. A pullback in the US markets, which have recently been setting new records, or new profit warnings from the industrial sector could accelerate this downward trend.
A Shock to the Auto Sector: Porsche and VW Collapse
On Monday, this weakness was particularly evident in individual stocks within the automotive sector. Investors experienced a "black Monday" after profit warnings dampened sentiment. Porsche stock plummeted by 8.2 percent, while Volkswagen stock fell by 7.1 percent. Analysts were critical of the companies' attempts to get their internal issues under control. However, for contrarian investors, these steep price drops could be an opportunity to analyze the stocks more closely and not miss a potential turnaround.
Can the DAX Stage Another Reversal?
For Tuesday, the DAX faces the crucial question of whether it can recover and initiate another turnaround. One positive signal was that the intraday lows on Monday were immediately bought up. This indicates that there is still buying interest and could provide the market with a better starting position for October. However, it remains to be seen whether this cautious optimism is enough to free the index from its sluggish trading range.
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