Weak Monday - but that could be a good sign
The DAX started the trading week cautiously, in which the current Chancellor Olaf Scholz did not pass the vote of confidence in the Bundestag and so it is now the turn of the Federal President to dismiss the government and call new elections. The DAX seems to have already priced in this political maneuver, which has been fixed for weeks. On Monday, in any case, the German stock index fell by 0.45 percentage points and closed at 20,313 points. Even good figures from the purchasing managers' index in the service sector could not change the fact that the DAX closed in the red. The figures in the manufacturing sector were too weak.
Will the Fed continue to pull the markets higher?
In two days, the US interest rate decision is due. Initially, this did not change the fact that technology stocks continued to be in demand and the index set further records accordingly. The Dow Jones did not succeed at all. The values of the Dow Jones Industrial Index continued to lose value overall, so that the index also ended the trading day with a minus. This is also likely to be the crucial point for the DAX. If the US blue chips are able to gain again, this would certainly be an excellent opportunity for the DAX to gain again.
Vonovia collapses after severance pay Siemens
Energy was the stock that was most in demand in the DAX on Monday and accordingly went out of trading with a gain of 4.5 percent. Commerzbank shares followed in second place in the DAX list with a gain of 2.1 percent. The red lantern was carried by Vonovia's shares on Monday, down 4.1 percent. The trigger for the weak performance of Vonovia shares was the determination of the severance payment for Deutsche Wohnen. On Tuesday, things could continue to be correspondingly quiet before the Fed makes an interest rate decision on Wednesday. Experts from various analyst firms expect the Federal Reserve to slow down in terms of interest rate cuts. Finally, the inflation rate is also rising again in some economies, such as the USA.
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