Government drama doesn't matter - DAX rises again
The German government is gradually degenerating into a soap opera and the financial markets are taking note of this calmly. So, nothing new from Berlin, whether it's a minority government or a complete standstill until January, the markets don't seem to care much. Perhaps it is even better for the situation and the economy if the current government does not make any more decisions rather than frequently failing to make any good decisions. In any case, the DAX was able to make up for Wednesday's sell-off yesterday and closed 1.7%. This was compounded yesterday evening by the Federal Reserve's interest rate decision, which cut the key interest rate by a further 25 basis points. This gave the stock markets a further boost and the Fed is thus trying to achieve the soft landing that it is now consistently steering towards.
Rheinmetall with price explosion
Among the DAX stocks, it was the shares of Rheinmetall and Heidelberg Materials that topped the DAX list yesterday. Rheinmetall shot up by an incredible 9 per cent yesterday, due to the company's outstanding quarterly results and the fact that Donald Trump is a US president who will encourage Europe to invest more in defence. The shares of Fresenius and E.ON were at the bottom of the DAX list yesterday, Thursday. Fresenius fell by 2.7 percent and E.ON by 1.7 percent.
Gold situation remains tense
Despite its upward movement, gold has not yet been able to avert the danger of a major correction. Even the further lowering of the key interest rate in the USA could not ensure that gold would have experienced strong demand. It must therefore still be assumed that it is possible that the gold price will continue to fall. Gold is currently trading at around USD 2,680 per troy ounce
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.