The German stock index DAX reached a new all-time high early on Monday morning, but is now trading slightly lower. The index briefly peaked above 24,830 points around 8:45 am. Meanwhile, around 3:08 PM, the DAX is at 24,704.93 points. Investors appear to be taking profits after the strong rise earlier in the day.
DAX price under pressure after peak at opening
The German stock market day started with a bang on Monday morning. In the first hour of trading, the DAX broke through to a new record level of 24,834 points. The increase was driven by strong performance in the defense sector, with companies such as Rheinmetall and Siemens Energy posting solid profits.
Yet the euphoria turned out to be temporary. As the day progressed, investors slowed down a bit. Technical trading dominates the picture at the moment, with a clear trendline supporting the upward movement. Analysts note that buyers may re-enter if the price falls back towards 24,600 points, where there was strong support previously.
Despite the slight loss from the peak, sentiment remains largely positive. The expectation that the ECB will pursue a neutral interest rate policy for the time being and the Fed will adopt a cautious stance contributes to the risk appetite on the stock market.
European stock exchanges turn green
The rest of Europe shares in the optimism. The pan-European Stoxx 600 is 0.42 percent higher, with strong gains for defense companies. The FTSE 100 in London is up 0.36 percent, while the Italian FTSE MIB even gains 0.66 percent. The French CAC 40 and Spanish IBEX 35 also show slight increases.
The continued uncertainty about the geopolitical situation in Venezuela and rising expectations for defense spending appear to be providing additional impetus to European markets for the time being.
Source: https://newsbit.nl/dax-opent-op-recordhoogte-is-dit-het-begin-van-een-nieuwe-rally/
