The DAX began trading on Monday with gains. The leading index was calculated at around 25,965 points shortly before 9:40 a.m., representing a 0.6 percent increase compared to Friday’s closing level. Companies leading the gainers included Commerzbank, SAP, and Deutsche Bank, while FMC and Hannover Rück registered losses.
Jochen Stanzl, Chief Market Analyst at Consorsbank, noted that “political markets have short legs,” stating that the DAX had lost all the midterm gains it had achieved in two trading days. He suggested that much of the volatility was due to differing market participant attitudes-some were too pessimistic while others were too optimistic-and that following the interim elections, the DAX had returned to its previous level. Stanzl concluded that no new trend had emerged in the market.
He also added that while there is a visible stabilization in the stock prices, investors are showing signs of growing “AI fatigue.” These investors are no longer easily attracted by grand promises that justify high valuations; instead, they demand tangible results. Furthermore, Stanzl mentioned that Democrats have discovered that winning elections against Big Tech is more perilous for the stocks in that sector than any new regulation. Although the AI boom has not stopped after the midterms, it now faces political headwinds that had not been priced into the market. The current uncertainty revolves around whether and how strongly the Democratic Party’s harsh rhetoric about AI can genuinely slow down the industry’s growth.
In currency markets, the Euro was stronger on Monday morning, trading at one euro to 1.1187 US dollars. Consequently, a dollar could be obtained for 0.8939 euros.
