Budget consultation for the fiscal year 2000 considered by the Commission.
DAX Expected to Rebound on Tuesday Amid Positive Economic Indicators
The German DAX index is poised for a rebound on Tuesday, following a 0.3 percent decline on Monday, as stronger corporate earnings, softer German inflation data, and hopes for monetary easing from the European Central Bank continue to drive positive momentum.
Commerzbank, Siemens Energy, and Deutsche Telekom were the strongest performers in the DAX on Monday, while Rheinmetall, Heidelberg Materials, and Zalando were at the bottom.
The ZEW economic sentiment index for August in Germany will be released in the morning, but recent reports generally reflect improving investor sentiment due to easing inflation and expectations of central bank rate cuts. The increase in Germany’s manufacturing PMI to a 38-month high of 49.9 in August suggests growing economic confidence.
US President Donald Trump has delayed the planned tariffs between the US and China until November 10, which has helped ease trade-related uncertainties. The US inflation data for July will be released in the afternoon, and soft inflation readings in Europe have helped fuel expectations of interest rate cuts by the Federal Reserve later in the year. Market pricing anticipates up to two US rate cuts, which implies inflation may be moderating, contributing to optimism in equity markets including the DAX.
The DAX’s near-term resistance lies around 24,500 points with support near 24,000, reflecting sensitivity to Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole speech and ongoing geopolitical developments. Despite trade tariffs and geopolitical risks, Germany’s economy shows resilience with steady manufacturing growth and expectations for DAX earnings growth of 4% in 2025 and 15% in 2026 and 2027.
Investor confidence remains linked to soft inflation trends and expectations for European and US monetary easing, both of which are key drivers for a sustained DAX rebound next week. The tech-heavy Nasdaq 100 closed 0.4 percent down on Monday, while the S&P 500 closed 0.3 percent down at 6,373.45 points.
Meanwhile, the CSI 300, which tracks the most important Chinese mainland stocks, is up 0.5 percent, and the Japanese Nikkei 225 gained 2.4 percent after the holiday break on Monday. Silver is currently trading at $37.88 per ounce, and gold is at $3,353 per ounce.
Quarterly results are expected today from companies such as Ceconomy, TAG Immobilien, K+S, Schott Pharma, Hannover Rück, Mutares, Cancom, and Secunet. Boeing's July delivery numbers are expected in the evening.
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