Investors use weakness to enter - profit-taking ahead?

Investors use weakness to enter - profit-taking ahead?

The DAX started on Wednesday with a marginal increase of 0.01 percent at 18,078.89 points. In the further course it remained mostly above the 18,200 point mark until it fell significantly after the publication of US economic data and fell back to 17,975.84 points. But in later trading the stock market barometer recovered and closed with a slight premium of 0.11 percent at 18,097.30 points. The DAX reached an interim low of around 18,000 points on Tuesday, which was its lowest level in almost three weeks. The DAX's record high remains at 18,567.16 points, while the highest closing level of all time was 18,492.49 points.

Investors remained optimistic amid the volatility and cautiously returned to trading after profit-taking began. Market strategist Jürgen Molnar from broker Robomarkets pointed out that investors are currently using the slight weak days to get in. However, if it becomes clear that new highs are no longer achievable, massive profit-taking could occur.

US inflation data for March showed an increase in the rate from 3.2 to 3.5 percent from the previous month. Experts had only expected an inflation rate of 3.4 percent. This increase could make it difficult for the US Federal Reserve to reduce inflation to its two percent target. Higher-than-expected inflation could delay monetary easing and hurt investors' hopes of early interest rate cuts. The following day the interest rate decision of the European Central Bank (ECB) is on the agenda.