DAX registers sixth consecutive record high, however, query arises regarding Rheinmetall and BASF's share performances.
New Market Heights: DAX Climbs, Rheinmetall and BASF in Focus
The DAX soared to a record-breaking high today, reaching 20,500 points before easing off somewhat. The euphoria on the German stock market, however, wasn't enough to carry over into Wall Street, which started Monday with cautious trading. As of now, the DAX stands at 20,403 points - not far from its previous position on Friday. The Euro Stoxx 50, on the other hand, is sprightlier, up 0.4 percent and sitting at 4,997 points.
With key events on the horizon - the release of US inflation data on Wednesday and the European Central Bank's (ECB) interest rate decision on Thursday - there's a sense of wariness among investors. The US Federal Reserve's interest rate decision next week adds another layer of uncertainty.
Despite the recent surge that's seen the DAX jump by almost six percent since late November and post six consecutive records, Martin Utschneider of Finanzethos remains optimistic. He insists the year-end rally is still in full swing and doesn't foresee any sell signals. However, Thomas Altmann, a portfolio manager, voices skepticism, suggesting the DAX is currently "overbought."
DAX (WKN: 846900)
Yesterday, the BASF share took the lead among DAX constituents, climbing an impressive 3.3 percent. Analysts at Warburg Research upgraded their assessment of BASF from "Hold" to "Buy," adding to the share's momentum. On top of that, UBS bank identified BASF (along with Covestro and Lanxess) as the primary beneficiaries of potentially cheaper gas prices.
In Oliver Schwarz of Warburg Research's opinion, BASF's business in China has picked up, with inventory levels decreasing across most customer segments. Higher oil prices and demand for oil-derived products are also supporting the company's margins. A chart analysis suggests the BASF share could separate itself from its downward trend that started in October, with the 200-day line at around 46.40 euros within reach as a long-term trend indicator.
Rheinmetall is grappling with sell-offs on the other hand. Defense companies like Rheinmetall are experiencing profit-taking, driven by events such as the fall of Syrian leader Bashar al-Assad and the return of former President Donald Trump to global politics. After meeting with French President Emmanuel Macron and Ukrainian President Volodymyr Zelensky, Trump called for a ceasefire in the conflict between Russia and Ukraine, urging Russian President Vladimir Putin to intervene.
With additional insights from dpa-afx
Outlook Ahead
According to market forecasts, the DAX index is expected to exhibit a generally positive trend through 2025 and 2026, with fluctuations. Mid to late 2025 could see the DAX around 23,000 to 24,500, and monthly averages and values increasing modestly from April to June 2025[1][4]. In 2026, early values are projected to be around 27,700 to 29,000, with May 2026 expected to surpass 31,800[1]. Beyond 2026, the DAX could reach approximately 30,000 by the end of 2028 and around 40,000 by 2034[2].
Specific predictions for Rheinmetall and BASF shares were not found within the search results. However, given their status as major DAX constituents and the index's overall anticipated growth, their shares can reasonably be expected to align with or even outperform the DAX, subject to sector-specific risks and opportunities.
These forecasts indicate a bullish medium- to long-term trend for the German stock market, with Rheinmetall and BASF shares likely benefiting from this growth, although sector-specific factors will play a significant role.
Sources:[1] Long Forecast DAX 2025-2026[2] Coinpriceforecast DAX long-term predictions[4] Pound Sterling Live DAX forecasts 2025
Investors watching the German stock market may be interested in the future performance of key DAX constituents, such as Rheinmetall and BASF.With the DAX index expected to exhibit a generally positive trend through 2025 and 2026, it is anticipated that shares of Rheinmetall and BASF, being major DAX constituents, could benefit from this growth, subject to sector-specific risks and opportunities.
