Market report: DAX still in rally mode

The DAX is likely to top yesterday’s plus and start the day again with price gains. Now only the upcoming US inflation data can spoil the bulls’ day.

The DAX should seamlessly continue yesterday’s successful trading day. After an increase of 0.9 percent at the start of the week it could continue to go up thanks to strong US guidelines. The broker IG assesses the 40 German standard values ​​​​at the hour 0.5 percent higher at 16,183 points.

The DAX is preparing to completely close the downward price gap from May 24 (upper edge at 16,144 points). If successful, the German stock exchange barometer would open the door wide towards a record high of 16,332 digits. On the downside, the hold zone at 15,600/15,700 still holds.

Hopes of an interest rate pause by the US Federal Reserve had driven up prices on Wall Street. The leading index Dow Jones gained 0.6 percent to 34,066 points. The broad-based S&P 500 was up 0.9 percent to 4,338 points and the tech-heavy Nasdaq was up 1.5 percent to 13,461 points. For both indices, this meant the highest closing level since April 2022.

Investors were optimistic ahead of this afternoon’s US inflation numbers. Market traders expected inflation to cool down slightly in May and the US Federal Reserve to leave interest rates in the range of 5.0 to 5.25 percent on Wednesday. It would be the first pause in the Fed’s rate hike cycle since January 2022.

The good guidelines from Wall Street are also having an effect on the Asian stock exchanges. The Japanese leading index Nikkei, which comprises 225 stocks, rose by 1.9 percent shortly before the close of trading in Tokyo, led by technology stocks. The Shanghai stock market trended sideways.

Meanwhile, investor speculation that the Fed will pause interest rates is weighing on the dollar, which is lagging somewhat against major currencies. At the same time, the euro rose in Asian foreign exchange trading by 0.2 percent to $ 1.0781. The troy ounce of gold is trending sideways at $1960.

In the DAX, the focus is on the Brenntag share in the morning. The investor PrimeStone followed up shortly before the general meeting in the dispute with the chemical dealer. The hedge fund has now criticized that Brenntag is making it technically unnecessarily difficult for shareholders to vote for its counter-motions. However, Brenntag receives support from the German fund companies DWS and Deka.

SAP shares could also be worth a look, as US rival Oracle exceeded market expectations with its quarterly figures. For example, cloud revenues grew – also thanks to the hype surrounding AI applications – by 54 percent to $4.4 billion. Bottom line, Oracle earned $ 3.3 billion – four percent more than a year ago.

In the midst of the debate about a new austerity program, the Bavarian television group ProSiebenSat.1 is parting ways with its entertainment board. Wolfgang Link will leave the company “on the best of terms” in mid-July, ProSiebenSat.1 announced. CEO Bert Habets will take over Link’s tasks himself in the future.

The US trade regulator FTC wants to stop Microsoft’s takeover of video game provider Activision Blizzard with the help of an emergency judge’s decision. The FTC filed a request for an injunction in federal court to prevent the approximately $69 billion deal from completing. The FTC had already initiated legal action in December due to competition concerns.