Stock Market Slump: DAX Continues to Fall - Grim Expectations Ahead
Weekly Wrap-Up: German Market Trends and Investment Insights
It's been a tumultuous week for the German benchmark index, with the DAX currently at 22,399 points and the Euro Stoxx 50 at 5,319 points, veering away from the 23,000-point and 6,000-point marks, respectively.
The threat of U.S. import tariffs on cars and car parts has weighed heavily on the German market, causing the index to lose ground on the 21-day line, a key short-term trend indicator. Portfolio manager Thomas Altmann of wealth manager QC Partners foresees the index in a volatile, indecisive market, grappling for direction. This market, he contends, is heavily influenced by politics, with sentiments swiftly shifting and frequently changing.
Results from financial experts at Landesbank Helaba suggest a deterioration in market sentiment. Despite this, the likelihood of a significant correction has increased, yet the overall upward trend persists. Analyst Jochen Stanzl from broker CMC Markets comments, "Given the ongoing trade turmoil under President Trump, the DAX is surprising in its resilience."
Two stocks under noticeable pressure within the DAX are Siemens Energy and Commerzbank, with losses of approximately five and six percent, respectively. The weakness in various sectors has prompted further profit-taking ahead of the weekend. Notably, Deutsche Bank's stock has also fallen by 3.55 percent.
JPMorgan analyst Kian Abouhossein points out that Deutsche Bank's CFO, James von Moltke, renewing his contract until 2026 has come as a surprise, with his and CEO Christian Sewing's significant turnaround of the company in recent years. The extension of Sewing's contract until 2029 is also welcomed.
The fall of Siemens Energy's stock appears unrelated to any negative company developments. Rather, it might be the result of the deteriorating market conditions, escalating trade tensions, uncertain politics, and possibly a "tech-fatigue" in the market, impacting advanced, tech-savvy energy stocks.
As for the best performer in the DAX, it's Symrise, which has gained 2.7 percent. JPMorgan maintains its "Overweight" rating and 120 euro price target for Symrise ahead of its first-quarter results, scheduled for the end of April. Analyst Edward Hockin anticipates a modest start to the year for the aroma and fragrance manufacturer but expects accelerating growth in the second half.
This content incorporates elements from dpa-AFX.
Additional Reading:
- Exploring Defense and Infrastructure Stocks: Multiplication Potential Ahead
- Assessing the Markets: Is a Crash Imminent? A Comprehensive Analysis
Despite the volatile market conditions and escalating trade tensions, the German benchmark index, including stocks like Siemens Energy and Commerzbank, continues to grapple for direction. On a positive note, Symrise, a leading aroma and fragrance manufacturer, remains the best performer in the DAX, with a 2.7 percent gain. The forward-looking analysis of the markets and specific stocks, such as the exploration of defense and infrastructure stocks, provides valuable insights for the finance and business sectors.
