Financial expert analysis: Investors cautious after record high - DAX remains below 17,000 mark

Financial expert analysis: Investors cautious after record high - DAX remains below 17,000 mark

After the record high this week, the DAX remains rather cautious despite quarterly reports and interest rate fantasies. The DAX closed with a moderate gain below the 17,000 point mark. The MDAX and SDAX also increased in percentage terms, but investors remain cautious. According to Frank Sohlleder, market analyst for ActivTrades, it is typical for investors to take profits after an all-time high. In the USA, the probability of a fifth interest rate cut this year increases to 70 percent. There is also a tense economic situation in European countries, with the risk of recession high in Germany, the Netherlands and Great Britain. Despite a robust labor market in the USA, the economic situation remains tense. New York Community Bancorp had to write losses and cut its dividend due to non-performing real estate loans. The tobacco company British American Tobacco (BAT) also reported high write-offs due to falling cigarette consumption in the USA. In contrast, shipping giant Maersk recorded a slump in profits, which unsettled investors. Analysts expect slower growth in global steel demand excluding China. Deutsche Börse reported rising earnings thanks to higher interest rates and brisk trading activity on the markets. Disney was able to significantly reduce losses in its streaming business and recorded an increase in quarterly profit. Mattel posted strong sales and profit growth during the holiday season thanks to the success of the “Barbie” movie.

According to a report from www.tagesschau.de, the situation on the financial markets overall is rather subdued. While the US Federal Reserve has recorded a decline in inflation in recent months and interest rate cuts are therefore expected, the situation in the financial sector and on the labor market remains inconsistent. This could lead to further uncertainty and reluctance among investors and have a long-term impact on the market. The weak numbers from some large companies in various sectors show that the economy may face greater challenges. However, the soaring success of Mattel's "Barbie" film could be interpreted as a positive signal for the entertainment industry. The financial sector should therefore keep a close eye on the development of certain sectors and companies in order to derive possible investment strategies.