DAX shoots into new spheres after US jobs data
The German share index heads into the weekend at a new all-time high. Stock market experts speculate that the upward trend could continue. However, Siemens Energy shares are unable to benefit from the positive sentiment.
Following the US labor market report, the DAX climbed to another record high in the early evening. The leading German index rose at times to around 16,783 points and ultimately closed 0.78 percent higher at 16,759.22 points. With a weekly gain of 2.2 percent, it rose for the sixth week in a row. Since its October low of 14,630 points, the DAX has gained a good 14.5 percent. Investors continue to bank on interest rate cuts by central banks in the near future.
The MDAX of medium-sized companies rose by 0.59% to 26,691.29 points before the weekend. The US jobs data was surprisingly robust, with the number of new jobs created in November slightly exceeding economists' expectations.
"Although some special factors such as seasonal jobs in the retail sector or the end of the strikes in the automotive industry may have played a role, a slowdown looks different," wrote Konstantin Oldenburger, market analyst at CMC Markets. On the other hand, it is unlikely that the job growth will lead to a further interest rate hike. This is another reason why the market could continue to rise towards 17,000 points.
Investors hope for interest rate cuts in 2024
The next interest rate decision by the US Federal Reserve is due on Wednesday, followed by the European Central Bank (ECB) on Thursday. Market observer Andreas Lipkow commented that the US labour market report had "once again created a lot of room for interpretation in the interest rate discussion". In principle, investors do not expect either central bank to raise interest rates before Christmas, but they do expect interest rate cuts in the coming year.
On the German stock market, the share price of Siemens Energy, which brought up the rear in the DAX, fell by 2.2 percent. For the analysts at JPMorgan, they are among the stocks that investors should avoid. Following a buy recommendation from Deutsche Bank, Airbus recorded growth of 2.5 percent and at times rose to a record high of 142.04 euros. Analyst Christophe Menard sees "light at the end of the tunnel" for the aircraft manufacturer and a turning point in deliveries.
Adidas and Puma SE recovered by 1.2 and 0.3 percent respectively, after investors had initially cashed in on the good run the day before. A lower-than-expected outlook from North American sportswear manufacturer Lululemon did not prove to be a burden.
The euro weakens
The leading eurozone index EuroStoxx 50 rose by 1.11 percent to 4523.31 points. The French Cac 40 even climbed 1.3 percent higher, while the British FTSE 100 closed up a good half a percent. In New York, the Dow Jones Industrial rose slightly at the close of European trading.
The euro came under pressure after the US data and last traded at 1.0743 US dollars. The European Central Bank set the reference rate at 1.0777 dollars. The dollar thus cost 0.9279 (0.9284) euros. On the bond market, the current yield rose from 2.20 percent the previous day to 2.25 percent. The REX bond index fell by 0.12 percent to 126.49 points. The Bund future fell by 0.64 percent to 134.57 points following the job data from the USA.
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In response to the robust US jobs data, the DAX, being the leading German index, witnessed a surge and reached a new all-time high, which further solidified its upward trend. This bullish momentum in stock trading on the German Stock Exchange could potentially push the DAX towards 17,000 points.
Given the current market situation, where experts and investors anticipate interest rate cuts by central banks in the near future, some investors may find opportunities in stock trading related to the DAX, such as positions in blue-chip companies listed on the German Stock Exchange.
Source: www.ntv.de
