The feared difficulties in reaching a new record high evaporated into thin air on Monday. Investors eagerly bought in, pushing the DAX to a new all-time high. The index is now on the verge of breaking the 24,000 point mark. It seems likely that it's only a matter of time before the German leading index overcomes this psychological barrier. It appears to be the case that "crisis" is when everyone talks about it, but the DAX continues to set new records. While it may seem unusual, it must be noted that most DAX companies are internationally oriented and therefore stand on broad "revenue pillars."
The downgrade of the USA only caused brief irritation on Monday; far more important to investors was the announcement that Great Britain and the European Union intend to cooperate more closely for the first time since Brexit.
VW Shareholders Demand Removal of Porsche CEO Blume - Stock Loses Over 5%
Among individual stocks, Siemens Energy shares rose by 3.6 percent, Munich Re gained 1.8 percent, and Rheinmetall once again showed positive sentiment with a 1.7 percent increase. The biggest loser on Monday was Volkswagen stock, which fell by over 5.2 percent. The negative image of the group was also reflected in the shares of Porsche Holding and Porsche AG. The sell-off is attributed to VW shareholders demanding the removal of group CEO Oliver Blume.
From a technical perspective, the DAX closed strongly on Monday and also received tailwind from the USA after hours. The question now is whether yesterday's Monday represented an overreaction and if profit-taking will set in. Since the DAX is in a solid uptrend, it's also quite conceivable that the DAX rally could continue throughout the trading week.
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