Dax continues to dive deeper below the record-breaking mark.
The Dax Taketh a Dive Post-Peak. In a muted global market landscape, the renowned German index concluded its Tuesday session with a 0.83% decrease, settling at 18,591.85 points. The MDax of mid-sized corporations followed suit, dipping 0.43% to 25,296.83 points.
Initial this week, the Dax approached a historic 19,000-point threshold but retreated mere steps away. Market analysts are currently fixated on economic data, specifically from the US, and the subsequent implications for the US Federal Reserve's monetary policy.
Rumblings of a possible recession seem to be gaining traction. The forthcoming monthly US job report, slated for release on Friday, has now moved into the spotlight. This data is likely to shape anticipation regarding a potential interest rate reduction from the Fed. Until then, it appears that investors are choosing caution, hesitant to take on substantial risks.
Traditionally, September poses challenges for the financial markets. Nonetheless, technical analysts from Index-Radar advise against reading too much into the recent decline. "After the robust surge in August, many indices had reached record heights and had become technically overheated. The current profit-taking could be viewed as a common summer storm."
The stock market, especially the Dax and the MDax, have been influenced by economic data and potential monetary policy changes from the US Federal Reserve. Investors, due to rumors of a possible recession and upcoming economic data, are opting for caution and are reluctant to take on significant risks in the stock market.
