DAX corrects after record high - experts expect continued stable investment needs

DAX corrects after record high - experts expect continued stable investment needs

According to a report by www.finanzen.net, the German leading index DAX paid tribute to the strong gains of the past few days on Thursday. The DAX opened trading 0.2 percent lower at 16,623.89 points and recently lost 0.16 percent to 16,628.99 points. Market participants spoke of a healthy reprieve and sometimes consider the market situation to be overbought after the DAX reached another record high of 16,727 points and extended its year-end rally to over 13.5 percent.

Profit-taking was an issue due to the development of overseas stock markets. In the USA, the market-wide S&P 500 closed at the daily low with slight losses. In addition, initial claims for US unemployment insurance benefits increased, while the market speculates that interest rates will fall in the coming year. In Germany, industrial production fell by 3.5 percent in October compared to the previous year, which led to rising prices on the bond market.

Falling prices are likely to be quickly used by other market participants to enter, and the need for investment remains high and should support prices until expiry on Friday next week. From a technical perspective, the situation remains promising as long as the DAX no longer falls sustainably below its previous all-time high of just under 16,530.

The latest export data from China point to an economic recovery and support the thesis of a positive development. Overall, current developments show that the stock market is influenced by various factors, such as international events and company fundamentals.

These factors may lead to short-term volatility, but in the long term the prospect of economic and stock market recovery remains positive. Investors should pay close attention to current events in order to adjust their investment strategies.