The DAX 40 could regain height in the short term
The DAX 40 has shown resilience since the beginning of October compared to its European counterparts. The German DAX is consolidating close to its recent highs, while the CAC 40, the SMI and the FTSE 100 have fallen significantly against the backdrop of Donald Trump’s victory.
The German index is supported by a rise of more than 10% since the beginning of October in Deutsche Telekom and its technology giant SAP, which has once again become the largest European stock market capitalization, while more cyclical values are under pressure due to economic concerns. growing in Europe and China.
The next European and Chinese economic publications will be very important for the Eurozone indices, including the DAX. Despite the DAX’s resilience, the German index and its peers are unlikely to gain much upside until the economic outlook improves. Bounces should be limited.
The appointment of hedge fund manager Scott Bessent as US Treasury Secretary by Donald Trump on Friday evening could, however, give a little boost to European indices. Indeed, the new Secretary of the Treasury has indicated several times in recent months that the customs tariffs desired by Donald Trump should rather be considered as a negotiating tool for security and international trade.
That said, the German elections scheduled for February will be ones to watch. For the moment, the German elections are more supportive of the DAX thanks to the first position of the CDU/CSU in the polls. Angela Merkel’s former camp is seen as “pro-business”, is attached to the Franco-German relationship and is in favor of restarting nuclear power plants in the country in order to reduce electricity prices. Their victory could therefore allow a renewed enthusiasm for the euro zone.
DAX 40 daily price chart – key levels
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