The favorable stock market environment brought the Dax closer to its all-time high earlier in the week. The main German index rose 0.65 percent to 17,037.35 points on Monday. On Tuesday of last week, the stock market barometer reached its all-time high of almost 17,050 points. The MDax of mid-sized stocks rose 1.42 percent to 26,095.34 points at the beginning of the week.
The stock market is currently benefiting from the rally in technology stocks in the US. This is driven by the hope of making big profits in the future through the use of artificial intelligence.
US consumer prices to be released on Tuesday
However, the DAX is finding it difficult to sustainably surpass the 17,000 point mark, wrote Konstantin Oldenburger, an analyst at trading company CMC Markets. Follow-up purchases were still missing.
ZEW economic expectations, an important leading indicator of the German economy, will be published on Tuesday. In the US there are also consumer prices, which are the subject of great attention around the world. Inflation data from the world's largest economy, along with labor market and other important economic data, are among the key indicators the US Federal Reserve uses for its interest rate decisions. The majority of the market now expects the first interest rate cut in May, as inflation has already decreased significantly.
Santander's buy recommendation takes Siemens Energy to the top of the DAX
Among individual stocks, Siemens Energy shares rose to the top of the DAX with a gain of 5.7 percent. They benefited from purchase recommendations from the Spanish bank Santander and Bank of America (BofA). BofA analyst Alexander Virgo wrote that the group's wind turbine business may have put the worst behind it.
Rheinmetall was also one of the biggest gainers with an increase of 3.7 percent. The arms company is significantly expanding its production of artillery shells. He also reiterated his ambition to double sales to 20 billion euros in seven or eight years, as his boss Armin Papperger said in an interview with the “Handelsblatt” newspaper. Shares in Rheinmetall and those of defense electronics specialist Hensoldt generally continue to benefit from the prospect of increased defense spending in Western countries. Hensoldt rose 3.6 percent on the MDax.
Nordex is strong according to preliminary annual figures
According to preliminary figures for 2023, Nordex shares rose 10.5 percent, clearly putting them at the top of the index. The wind turbine manufacturer clearly exceeded analysts' average sales expectations. Expert Constantin Hesse, from the Jefferies investment house, speaks of signs of good business towards the end of the year. The results supported improvement in operational development.
The eurozone's leading index, EuroStoxx 50, closed with a gain of 0.65 percent, to 4,746.35 points. The Paris National Stock Exchange posted gains of similar magnitude, while London's FTSE 100 was almost flat. In New York, the Dow Jones Industrial rose 0.5 percent at the close of European trading.
Current yield rises to 2.38 percent
The euro won. The European Central Bank set the reference exchange rate at 1.0773 (Friday: 1.0772) US dollars. Therefore, the dollar costs 0.9282 (0.9283) euros.
In the bond market, the current yield rose from 2.37 percent on Friday to 2.38 percent. The Rex bond index fell 0.15 percent to 125.17 points. Bund futures gained 0.07 percent to 133.51 points.