DAX Performance: Rallying Ahead of Key Business Sentiment Indicators

DAX Market Overview

On August 23, the DAX surged by 0.76%, showing significant gains following a previous day's rise of 0.24%, thus closing at 18,633.

Key DAX Market Movers on August 23

• Siemens Energy rallied by 2.71%.
• Heidelberg Materials increased by 1.84%.
• Vonovia saw a gain of 1.83%.

Investor interest surged due to rising expectations of upcoming ECB and Fed interest rate cuts.

Business Sentiment Focus

Upcoming on August 26, the Ifo Business Climate Index is expected to drop slightly from 87.0 in July to 86.5. A more significant fall might bolster expectations for September ECB rate cuts.

Expert Views

• Frederik Ducrozet from Pictet Wealth Management remarked on wage growth impacting ECB's stance.
• Robin Brooks from Brookings Institute highlighted weakening global economic conditions and its implications for Germany.

US Market Trends Affecting DAX

On August 23, with 10-year US Treasury yields declining, demand for riskier assets surged. Notably, the Nasdaq Composite Index rallied by 1.47%.

Near-Term DAX Trends

Future DAX movements will be influenced by inflation numbers and the US Personal Income report. Strong indications from these reports could push the DAX towards 19,000, while negative indicators might lead it below 18,000.

DAX Technical Indicators

The DAX remains comfortably above 50-day and 200-day moving averages, indicating bullish trends. A break above 18,750 could signal a push towards the all-time high of 18,893. Conversely, falling below 18,500 could favor bearish trends.