Quite a few people are throwing up their hands in dismay at the thought of the new debt package, which the parties of the Union, SPD, and Greens are expected to push through the Bundestag. Not so the financial markets, which have already been popping champagne corks even before the decision is made. The DAX is on its way to breaking new records—or will there be a surprising disappointment after all? There might be one or two dissenters too many, preventing the two-thirds majority necessary for this plan to pass.
Unusually strong for a Monday, the DAX rose by over 0.7 percent. The strongest performers in the DAX were the shares of Sartorius, Siemens Energy, and Bayer. While Sartorius remains stuck at the bottom of its range and Siemens Energy is searching for a path upwards, Bayer appears to be gradually lifting off from its bottom. Everything seems to be pointing towards another run of the DAX to a new record high—but caution is advised. On the stock market, facts are often sold, catching investors off guard time and again.
British Stocks in Demand - Index Back on Growth Track
A glance at the UK shows that investors there are also feeling relieved. The FTSE's performance at the start of the week was a strong 0.6 percent. Leading the way was the share of the Phoenix Group, which achieved a performance of over 9.6 percent. This allowed the index to rise for the fourth day in a row, strengthening the conviction that the British index can continue its upward trend.
From a technical perspective, the index faces a psychological resistance at 8,700 points, which it needs to overcome. The British pound is still hovering around the 1.30 US dollar mark. The British currency continues to perform strongly, even though there was a brief pause on Friday. Currently, investors are repositioning themselves, so a decision is imminent as to whether the 1.30 US dollar level can be sustainably breached. There is no doubt that pound strength is present in the market.
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