FRANKFURT / LONDON (IT BOLTWISE) – The German stock market is facing a challenging week as the DAX continues to struggle to stabilize. Despite positive company figures, such as those from NVIDIA, uncertainty remains high. Experts warn of a possible slide below the 23,000 point mark, which could further weigh on the market.
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The German stock market faces significant challenges in the coming week. After a significant price slide in the past few days, the DAX remains under pressure. Jochen Stanzl, chief market analyst at Consorsbank, emphasizes that the DAX could only be able to bottom out once the currently heated tempers calm down. Even positive news, such as strong quarterly figures from NVIDIA, could not support prices sustainably.
The high valuations in the technology sector in particular cause uncertainty. Capital market strategist Jürgen Molnar from Robomarkets points out that the AI hype currently appears more vulnerable than ever before. The DAX faces the challenge of defending the 23,000 point mark. A sustained slide below this could pave the way for further losses.
The DAX has already moved significantly away from its record high at the beginning of October. The hope of a year-end rally seems to have finally disappeared. Many investors are protecting their profits out of fear of further negative news. Seasonal factors also contribute to the fact that hardly any new buyers are currently coming into the market. Thomas Altmann from QC Partners explains that many investors no longer want to take new positions towards the end of the year.
In addition, the monetary policy headwind from the USA is weighing on the market. The latest labor market report has dampened the already dwindling hopes of a rate cut in December. Following the partial shutdown of the US government, important economic data is being released with a delay, making it difficult for the Fed to make decisions. The focus is on retail sales and producer price data, which are expected on Tuesday.
In Germany, the Ifo business climate index is published at the beginning of the week. Martin Roth from Commerzbank expects a slight increase, but this will remain low in long-term comparison. Inflation and labor market data will follow on Friday, while GfK consumer confidence will be published on Thursday. The reporting season is coming to an end, with only Aroundtown from the DAX family presenting quarterly figures.
Towards the end of the week, investors are largely on their own as US stock markets will be closed on Thursday for the Thanksgiving holiday and trading will be shortened on Friday. This often results in reduced trading and thinned markets, which could increase volatility.
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