Dax current: “Fear turned into greed within a few days” – Dax is heading for a record

Dusseldorf. After the turbulent last trading week, the Dax is on the hunt for records again on Tuesday. It continues its positive start to the new week and is also up 1.1 percent at 26,561 points in early trading on Tuesday.

Last week, the euphoria following the midterm elections in the USA and the clear victory of the Democrats helped it set a new record of 26,692.90 points. The Dax is now only around 100 points away from this. “The stock market bulls have regained command, and the fear of last week has turned into greed again within a few days, the greed for returns,” writes Andreas Lipkow, chief market analyst at CMC Markets.

The signs for Tuesday are mostly positive. A number of companies presented robust quarterly figures. The focus was particularly on the figures from the semiconductor manufacturer Infineon, which is listed in the Dax. Last week the share lost around ten percent within two days. On Monday it was one of the winners of the leading index, and on Tuesday it looks similar after a record quarter. The share gains over five percent.

Quarterly figures at a glance:

K+S: The fertilizer producer is defying the weak industry trend. The share gains two percent.

Uniper: The energy company increased profits particularly through strong gas business. The papers are unchanged.

Porsche SE: The VW parent company is slipping even deeper into the red due to a VW write-off. The stocks are still trading slightly higher.

US inflation in focus

However, the mood could change in the afternoon. Because at 2:30 p.m. the consumption prices for October will be published in the USA. These rose by 3.7 percent in September - and were therefore even further away from the Federal Reserve's (Fed) two percent target than expected. The central bank raised its interest rates in September to a range of 3.75 to 4.0 percent in order to dampen the sharp rise in inflation, particularly as a result of the war in Iran.

Investors expect another rate hike at the Fed's final meeting of the year in mid-December. Consumer prices on the other side of the Atlantic and expectations of the Fed also traditionally have an impact on stock market sentiment. Consistently high or even rising inflation could change the mood in Europe.

Investors hope for an end to the Iran war

Oil prices continue to fall on Tuesday. A barrel of North Sea Brent for delivery in January costs $91.22, around 1.5 percent less than the day before. Investors are hoping for a quick end to the Iran war after the US president ruled out further attacks on the country as long as negotiations make progress. He also declared the Iran war “militarily over.” “Geopolitical developments are currently providing important arguments for rising share prices,” writes analyst Lipkow.

Whether the parties have actually moved towards one another on their important issues cannot be seen from past statements from the USA and Iran.

In previous talks, Iran presented a list of demands that included sticking to its nuclear program and fees for passage through the Strait of Hormuz. These positions have so far not been justifiable for the USA. Foreign Minister Marco Rubio recently emphasized that there is no end to the war in sight.

Look at other individual values

Rheinmetall: After the sharp price drop of more than 17 percent in the red within one day, the shares are recovering again. The arms manufacturer's shares were among the winners in the Dax on Tuesday and were up around four percent. A major order from the Bundeswehr had been delayed, which is why Rheinmetall cut its forecast.