Germany’s leading index, the Dax of Frankfurt closes the session on new all-time highs in the wake of generalized optimism on the European indices. After the recent records of the Cac 40 (thanks to luxury stocks, above all LVMH) in Paris and the Ftse 100 from London. Also supporting today’s purchases is the possible resolution of the standoff between Republicans and Democrats, relating to the US debt ceiling, pushed the markets higher after a few sessions on parity. The best in Europe in the last session of the week is our benchmark index il Ftse Mib, which closed up 1.05% a 27,520 points.
The technical analysis of the DAX index
The benchmark ended the session higher by 0,9% a 16.302 punti, eclipse the previous high of January 5, 2022before the Russian invasion of Ukraine.
The stocks that supported the performance of the index are companies in the defense sector Rheinmetall (-0,4%), the energy company, Siemens Energy (+0.9%), the sportswear manufacturer Adidas (+1.44%) and the European tech giant, SAP (0.5%). All four titles have been among the top performers this year.
The excellent performance on the stock market followed the numbers relating to the first quarter of the year which were higher than expected, and thanks to the drop in inflationary pressures primarily the drop in energy prices. Germany’s main index, the DAX, which also includes German auto giants such as Volkswagen and BMW, also benefited from better-than-expected macro conditions. Recall that just six months ago, economists were predicting a recession in the Eurozone, which ultimately never happened.
The analyst Joachim Klement Of Liberum Capital commented: “The decline in the DAX index is led by export-oriented consumer and industrial stocks thanks to the substantial decline in inflation. Consumers have more purchasing power and therefore the ability to spend.”
“Thanks to the return of Chinese demand, industrials and above all the stocks of the automotive sector have revised their values upwards”. European equities have outperformed their global counterparts this year, led by the CAC 40, thanks to luxury goods as demand picks up from China.