Stock rally in Germany: Financial experts see further potential for DAX highs in the new year.

Stock rally in Germany: Financial experts see further potential for DAX highs in the new year.

According to a report by www.deraktionaer.de, Cooling inflation data from the USA and the euro zone recently fueled investors' hopes that the major central banks are now finished raising interest rates. That makes stocks more attractive. The DAX is rapidly approaching its record high. Cooling inflation data from the USA and the euro zone recently fueled investors' hopes that the major central banks are now finished raising interest rates. That makes stocks more attractive. The DAX is rapidly approaching its record high.

Ulrich Kater, chief economist at DekaBank, assumes that the recovery on the German stock market will continue because assessments of future monetary policy have changed. However, there is high uncertainty about further market developments. However, the prospect of a new all-time high is realistic, as the DAX has now risen by almost 12 percent from its October low in the current rally.

According to Helaba expert Claudia Windt, the year-end rally on the stock markets is warming up and the DAX's previous high of almost 16,529 points could fall in the new week. The fair value of the DAX is currently seen at 17,500 index points, which signals further potential for the coming year.

However, market experts at Landesbank Baden-Württemberg warn of a deteriorating risk-reward ratio and that the short-term market sentiment could act as a brake on prices if there is noticeable skepticism in the medium term after the turn of the year. A setback of up to 16,200 points cannot be ruled out.

The economic data and company dates, especially the US employment data from the private service provider ADP on Wednesday and the labor market report for November on Friday, could provide further information about market developments. Fresh interest rate impulses are also expected from US industrial orders on Monday and the ISM index for the services sector on Tuesday.

Overall, there is a more positive mood on the stock markets, but caution is advised as the risk-reward ratio has already clouded and further macroeconomic factors should be monitored.