DAX Bullish Outlook: Key Market Drivers and Insights
Market Overview
On Thursday, September 19, the DAX rallied 1.55%, reversing a 0.08% loss from the previous day to close at a record high of 19,002.
Key DAX Market Movers
- Rate-sensitive tech stocks, Infineon Technologies and SAP advanced by 2.19% and 3.27%, respectively.
- Lower borrowing costs and hopes for a soft US economic landing drove demand for auto stocks.
- Daimler Truck Holding rallied 2.64%, while BMW and Mercedes Benz Group advanced by 2.17% and 2.43%, respectively.
German Producer Prices in Focus
On Friday, September 20, German producer prices could influence sentiment toward the ECB rate path. Economists expect producer prices will fall by 1.0% year-on-year in August, down from a 0.8% decline in July. A more significant decline could fuel speculation about a Q4 2024 ECB rate cut, possibly driving demand for DAX-listed stocks.
ECB President Lagarde in Focus
Later in the session on Friday, ECB President Christine Lagarde is also on the calendar to speak. Insights into the ECB rate path and the economic outlook could influence demand for DAX-listed stocks. Support for an October ECB rate cut may push the DAX toward 19,200.
US Initial Jobless Claims
On Thursday, US initial jobless claims drove buyer demand for riskier assets. Initial jobless claims dropped from 231k (week ending September 7) to 219k (week ending September 14).
Expert Views on the US Labor Market
The Portfolio Manager at HY Market, Mario Cavaggioni, commented on the jobless claims report:
“Jobless Claims 219k (est 230k, last 231k) Continuing Claims 1.83m (est 1.85m, last 1.84m). Both JC and CC show lower trend, no signs that a sharp deterioration in labor mkt is happening.”
US Market Trends
On Thursday, September 19, the US equity markets recovered their losses from the Wednesday session. The Nasdaq Composite Index rallied 2.51%, while the Dow and the S&P 500 saw gains of 1.26% and 1.70%, respectively.
Near-Term Outlook
Near-term DAX trends will hinge on producer price figures from Germany and central bank chatter. A sharper decline in producer prices and support for ECB and Fed rate cuts could drive demand for DAX-listed stocks.
DAX Technical Indicators
The DAX remains well above the 50-day and 200-day EMAs, affirming bullish price signals. A breakout from the Thursday high of 19,045 could support a move toward 19,200. A break above 19,200 may give the bulls a run at 19,350.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.