Dax with a friendly start to the week – but upside potential is likely to be limited

Dusseldorf The German stock market is on the up after positive Chinese economic data. The Dax rose by 0.9 percent to 13,700 points in the first hour. Last Friday, the leading index closed 0.7 percent lower at 13,574 points.

Because the Chinese trade data had exceeded the wildest expectations. Thanks to booming exports, the trade balance surplus in China, at over 101 billion dollars, is higher than it has ever been since data collection began in 1987. As a result, demand from abroad is high, including companies from Germany. And the surplus also shows that the Chinese economy is recovering from the Covid lockdowns at an impressive pace.

Despite these positive figures, the upward potential of the leading German index is likely to be limited in the coming trading days. Because in the past five weeks, the Dax has risen by 1400 points from the year’s low. A longer breather seems likely in the coming weeks.