DAX full of hope: Investors expect positive price developments!

There is a clear upward trend on the German stock market this week, which is influenced by positive news. The DAX quickly recovered from a correction at the beginning of the week and reached new highs. In the USA, core inflation fell from 3.3% to 3.2% in December. This development has eased concerns about possible interest rate hikes by the US Federal Reserve, bringing relief to investors. Market strategist Konstantin Oldenburger notes that investors who had already written off interest rate cuts were surprised by this development. Although no key interest rate cuts are expected in the short term, there are good chances of an interest rate cut in the medium term.

However, RoboMarkets strategist Jürgen Molnar warns against a cautious stance given possible reactions from the White House. The upcoming inauguration of Donald Trump has particularly attracted the attention of market observers. Trump's announced tariff threats could have an inflationary effect and thus limit the scope for interest rate cuts. Despite these uncertainties, the DAX climbed by around 5% to 20,891 points in the last two weeks of trading. The volatility of the DAX is currently at 14 points, whereas last year it was over 20 points on just three days. This suggests that European investors have so far remained relatively unfazed by global uncertainties.

Positive reactions to inflation data

Investors in the German stock market continued to show buying interest on Tuesday after US inflation data was published. The DAX started the day with a decline of 0.09 percent at 15,358.59 points, but after the news rose to a daily high of 15,632.44 points and finally closed with a gain of 1.76 percent at 15,614.43 points. The decline in U.S. inflation from 3.7 percent in September to 3.2 percent in October exceeded economists' expectations of 3.3 percent.

In addition, it should be noted that the ZEW index of economic expectations in Germany rose to plus 9.8 points in November, after being at minus 1.1 points in the previous month. This represents the first positive reading since April. Meanwhile, RWE, Germany's largest power producer, reported an increase in adjusted EBITDA from January to September to 6.15 billion euros, up from 3.4 billion euros in the same period last year. The FAZ also reported that car stocks and the Rheinmetall share contributed to the strengthening of the DAX. Rheinmetall rose 6.5% to around 692 euros, boosted by defense investments, including a new contract for an air defense system with Italy, the first NATO country.