Dax on record despite weak economy - Commerzbank and Airbus in focus

Dax on record despite weak economy - Commerzbank and Airbus in focus

According to a report from amp2.wiwo.de, the German stock market is showing remarkable strength despite weak economic forecasts and tough inflation data. The Dax showed an expected correction, but immediately rose again. The German economy contracted in the fourth quarter of 2023 and the outlook for 2024 is bleak. Nevertheless, the DAX is at record levels, which is due to depressed economic expectations. Commerzbank recorded impressive sales and profit growth, which makes its stock attractive. Airbus, on the other hand, was unable to benefit from their business figures. Continental is showing signs of a turnaround in profits. The Dax still has some room for improvement before a weaker phase could possibly come in March.

According to my expertise as a financial expert, the depressed economic expectations in Germany mean that the ECB will probably shift the lever in monetary policy again in the medium term. As a result, investors hope for more liquidity in the market, which could be a boost for stocks. Commerzbank's strong performance and its positive forecasts could continue to make the stock attractive. The possible turnaround in profits at Continental and the attractive price level of its shares could also attract investors.

However, Airbus' problems in achieving its business goals could mean a breather for its shares. Despite positive sales volumes, they recorded a decline in net profit. Investors may wait for stock prices to stabilize before investing again.

Continental, on the other hand, is showing signs of a turnaround in profits and the share price could benefit from job cuts and increasing automotive demand from tires and auto supply divisions. Due to their comparatively low market value, their shares could represent an attractive investment opportunity.

Overall, the German stock market looks solid despite the economic challenges. It remains to be seen whether the forecast of a weaker phase in March will materialize.