Dax is stagnating despite positive US guidance - investors are hesitant about inflation data

Dax is stagnating despite positive US guidance - investors are hesitant about inflation data

According to a report by www.boerse.de, the German leading index Dax recorded a decline of 0.16 percent to 16,690.02 points on Tuesday. Despite positive guidance from the USA, investors were unable to make any further purchases as the price consolidation of the past few days continued.

The lack of positive drivers in the market has led analysts such as Pierre Veyret from broker ActivTrades to note that investors may have relied too heavily on signals from central banks that monetary policy would no longer be as strict in the future. This means that the risk appetite is now decreasing somewhat. The weak data on industrial production in Germany continues to cause unrest among investors, especially with regard to cyclical chemical and automotive stocks.

The weakness of the European technology sector is also being monitored, with Microchip's financial figures, which were published in after-hours US trading and were weak, playing a role. In addition, reclassifications at BASF and Siemens led to price losses, while the shares of DWS, the fund subsidiary of Deutsche Bank, were recommended to buy and thus recorded price gains.

With regard to the small cap index, there was a decline in Wacker Neuson after Jefferies received the buy vote for the shares of the construction equipment manufacturer. Analysts expect a difficult year in 2024 due to slower demand.

These developments indicate that the market remains uncertain and investors are acting cautiously. The upcoming inflation data from the US could have further impact on the market and should therefore be closely monitored.