Dax and MDax close in the red – investors cash in after rally

Dax and MDax close in the red – investors cash in after rally

According to a report by www.fr.de, investors cashed in after the recent rally on the German stock market. The leading index DAX closed on Monday 0.60 percent lower at 16,651 points. The MDax of medium-sized company stocks fell by 0.85 percent to 26,904 points.

The recent rally on the German stock market led to a record high for the Dax at just over 17,000 points, an increase of more than 16 percent since the end of October. This growth was mainly driven by the prospect of interest rate cuts in the near future. However, after this expectation was somewhat dampened by the European Central Bank (ECB), the local stock market lost momentum.

Individual stocks that particularly stood out were the shares of the Deutsche Börse with an increase of 1.7 percent in the Dax after a buy recommendation from UBS. Companies such as Siemens Energy and Ceconomy also lost value, with the latter having a negative impact on the SDax. The EuroStoxx lost 0.62 percent to 4,521 points on Monday, while the euro traded at $1.0920 after the European close.

These developments suggest that the ECB's expected interest rate cut has not been fully priced in and investors are reacting to a further downward spiral. The uncertainty on the stock markets could continue to lead to instability, particularly with regard to the outlook for the new financial year and the ongoing uncertain state of the consumer environment. It is advisable to continue to monitor developments and make adjustments to the investment portfolio if necessary.