Dusseldorf For the Dax, things have been going in one direction in particular lately: upwards. The most important German stock market barometer has increased by more than 25 percent in the past six months and is close to its all-time high.
One reason for this is the falling interest rate expectations associated with falling inflation. However, a look at the USA shows that there must be more behind the price rally. The inflation rate is falling even faster there than in Germany, but the prices of the leading indices S&P 500 and Dow Jones are developing worse. In the past six months, the S&P 500 has only risen by ten percent and the Dow Jones by nine percent.
An unusual development, explains stock analyst Ulf Sommer in the current episode of Handelsblatt Today: “In times of crisis, the Dax falls much more, but now it’s the other way around. The Dax has been doing significantly better than the US markets for a little over a year. That’s a very impressive balance sheet.” Sommer identifies the hopes of investors for a good quarterly season as the key price driver for the Dax. The large companies in Europe expect high profits.
More: Short sellers are significantly expanding their positions in the USA
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