Dax resistance and nervousness limit recovery gains By dpa-AFX

FRANKFURT (dpa-AFX) – After heavy losses last week, the German stock market stabilized on Monday. However, a more significant recovery failed to materialize, as the stock markets are nervous about the upcoming key interest rate decisions. While investors believe they are on the safe side with regard to the European Central Bank (ECB) over the course of this week, the situation is different for the USA.

“The big and decisive question on the trading floor remains: Will the Fed reduce its key interest rate by 0.25 or 0.50 percentage points next week,” explains portfolio manager Thomas Altmann of QC Partners.

It gained 0.55 percent to 18,403.22 points in the afternoon. The index of medium-sized companies rose by 0.61 percent to 25,199.56 points.

The German stock market barometer rose to just under 18,500 points during the day, but it did not go any higher. That is because there is “massive resistance,” as capital market strategist Jürgen Molnar from Robomarkets says. He means the moving 21-day line, which signals the short-term trend and is currently at around 18,465 points. Only when the DAX manages to jump above this will the way up be clear again.

Among the few losers in the DAX, Adidas shares (ETR:) stood out with a loss of 4.4 percent. Analyst Wendy Liu from the British investment bank Barclays (LON:) expects continued weak demand in China and also sees increased competition among sporting goods manufacturers. In the medium term, business momentum is therefore likely to slow down. Shares in Hugo Boss (ETR:) fell 5.2 percent.

Shares of car manufacturers are also weaker, with losses ranging between 0.5 percent for VW (ETR:) and 1.0 percent for BMW (ETR:). This also fits in with the general picture in Europe.

Siemens Energy (ETR:) meanwhile recovered from its significant losses on Friday with a plus of 3.2 percent. However, the energy technology company’s share has doubled in value since the beginning of the year, making it the best-performing share in the DAX so far.

Deutsche Bank (ETR:) rose by 2.5 percent and was based on the fact that JPMorgan analyst Kian Abouhossein generally adjusted his valuation model for the financial institution to the earnings progress expected for 2025 in the bond, currency and commodity business. The increased uncertainty about future interest rate developments is leading to more. This should result in higher customer activity in the interest and currency business, he expects. Commerzbank (ETR:) shares gained 2.2 percent as a result.

In the MDax, Kion (ETR:) shares lost 3.3 percent. The US bank Citigroup has withdrawn its buy recommendation for the forklift manufacturer’s shares. Industrial and economic data suggest weak growth in the short term, it said.

Analyst comments from the private bank Hauck Aufhäuser also lead to significant gains at Süss Microtec and heavy losses at PVA Tepla (ETR:) .

The euro was trading at 1.1045 US dollars in the afternoon. The ECB last set the reference rate at 1.1103 dollars on Friday.

On the bond market, the yield on outstanding bonds rose from 2.16 percent on Friday to 2.22 percent. The bond index is up 0.25 percent at 126.79 points. The (December forward contract) rose by 0.03 percent to 134.20 points.