The Dax began its trading day on Tuesday with slight losses. At around 9:30 AM, the leading index was calculated at approximately 25,520 points, which represented a decline of 0.2 percent compared to the previous day’s closing level. RWE, Adidas, and Zalando led the charges, while Allianz, Vonovia, and Deutsche Bank finished strong.
Thomas Altmann of QC Partners noted the improving sentiment, stating, “Optimism is returning. On top of the relief provided by the falling oil price, a new AI euphoria is now emerging.” This observation comes as the Nasdaq-Composite index closed yesterday at a new record high, surging over four percent during the last four trading days.
However, Altmann cautioned that this new euphoria is only being partially absorbed by the Dax. He explained that because the heavily hyped tech stocks have a small weighting within the Dax, its movement is currently more of a stabilization following a recent price decline. He added that calling for a trend reversal in the Dax is premature. Currently, the index has been oscillating between its 50-day line on the upside and its 100-day line on the downside, making it interesting to see which trend line it will break through next.
Meanwhile, the European community currency was slightly weaker Tuesday morning: the Euro traded at 1.1462 US dollars, while the dollar was priced at 0.8724 Euros.
