Stock Market Index DAX remains sluggish - Federal Reserve's interest rate increase fails to instigate recovery
The German stock market, DAX, has experienced a notable decline recently, with the benchmark closing at approximately 23,359 points on Wednesday following a 1.8% drop the previous day. The DAX today has seen highs of 24,046 points on September 1st and 24,063 points on August 29th, but has since dipped to 23,476 points on September 17th. Factors contributing to the DAX's weakness include the French political crisis, trade tensions, the Ukraine conflict, a strong euro, and profit-taking after the previous rally. Despite the downturn, the DAX has support levels at 23,381, 23,317, 23,284, 23,080, and 23,000 points, with the zone around 23,280/250 currently in focus for potential stabilization. The index also has resistance levels at 23,475 and 23,550 points, and a significant resistance at 23,795 points. If the DAX were to rise sustainably above 23,600 points, the marks of 23,795 and 23,855 would come into focus. The previous high for the DAX was 23,883 points, set on September 10th, and the US high was 23,855 points, set on September 15th. The Federal Reserve, led by Jerome Powell, announced a 25 basis points rate cut on Wednesday evening, marking the first reduction since December. However, Powell emphasized data dependency for future steps, which could impact market expectations and the DAX's performance. The DAX opened at 24,037 points on September 1st but quickly fell from this high. The markets continue to be influenced by hopes of rate cuts by the Fed, but political and economic uncertainties persist. In conclusion, the DAX has experienced a significant drop recently, with several support and resistance levels in play, and will likely continue to be influenced by global market factors.
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