DAX Unchained: New All-Time High Eyes the 25,000 Milestone
What a sensational kickoff to the first full trading week of the new year! Investors and traders on the German stock market were seemingly "unchained" on Monday. In an impressive wave of buying, they drove the DAX to a new historic all-time high of 24,872.92 points. This brings the magical psychological barrier of 25,000 points within immediate reach—a milestone that could fall as early as today, Tuesday.
Rheinmetall and Tech Giants Fuel the Rally
The primary driver behind this brilliant surge was Rheinmetall. Following the so-called "Venezuela shock," the stock soared by nearly 10 percent, dragging the broader market upward. Semiconductor giant Infineon also shone with a gain of over 4 percent, closely followed by the DAX perennial favorite Siemens Energy, which delivered a performance of 3.9 percent.
However, critical voices are urging caution: it remains to be seen whether these gains are sustainable or merely driven by recent military interventions. Should the geopolitical situation stabilize, some of these price premiums might be handed back in the coming days.
The Economic Paradox: Bad News is Good News?
Interestingly, market participants largely ignored the disappointing Purchasing Managers' Index (PMI) from the USA. In a "normal" market environment, such data would typically weigh on share prices. Currently, however, investors are speculating that weak economic data will force the Federal Reserve's hand. The hope is that a new round of interest rate cuts could be initiated much sooner than previously assumed by the market.
Bayer in Focus: Inflation Data and 52-Week Highs
Today, Tuesday, attention shifts to the German Purchasing Managers' Index and the latest inflation figures. The market expects a slight increase in the inflation rate of 0.3 percentage points. Simultaneously, Bayer is in the spotlight after reaching a new 52-week high yesterday. Positive developments in the long-standing glyphosate legal battle could generate further buying pressure. If Bayer maintains this momentum, it could provide the DAX with the necessary support to hold above 24,800 points and launch its final assault on the 25,000-point mark.
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