Dax current: Dax starts slightly positive - but below the 26,000 point mark

After the turbulence of last week, calm has returned to the German stock market. Two DAX companies have now presented convincing quarterly figures.

Dusseldorf. The German stock market is not finding a new direction at the beginning of the week. The leading index Dax is slightly up at 25,924 points in early trading. This means that he cannot get above the 26,000 point mark again.

Last week he set a new record there at 26,692.90 points before giving back all of his winnings within two days. He owed the record to new euphoria after the midterm elections in the USA, the collapse of the realization that the Democrats' clear win could reduce the growth of artificial intelligence (AI).

Now the Dax is looking for direction. “After the turbulent last few weeks, market participants will initially approach the new starting position cautiously,” writes Andreas Lipkow from the analysis house CMC Markets in his daily stock market analysis. "The initial shock after the US midterm elections seems to have been overcome. Many investors now view the significantly lower prices as attractive entry opportunities again."

This was already evident in Friday trading, in which investors in the Dax and on Wall Street bought stocks that were in double-digit losses the day before, especially the stocks of chip manufacturers. “But more follow-up buyers are now needed so that this recovery can continue,” writes Thomas Altmann from QC Partners.

In terms of charts, the leading index shows a trading range between 25,600 and 25,950 points. According to the analyst, the hope of cheaper entry-level prices is not enough for a sustained return above 26,000 points.

While there is no impetus for the upward trend, the risk with AI remains high, explains Jochen Stanzl, chief market analyst at Consorsbank. "The Democrats have discovered that you can win elections against Big Tech. This is more dangerous for stocks in the sector than any law," writes the analyst.

Iran war continues to concern

The Iran war also remains a dominant topic for the stock markets. “The geopolitical risk premium on the financial markets has fallen significantly, but it has by no means completely disappeared,” says Lipkow.

Oil prices continue to decline on Monday. A barrel (159 liters) of the reference Brent variety for delivery in January costs $96.59 in the morning, around two percent less than on Friday. Oil prices continue to price in progress towards peace in Iran.

US President Donald Trump will receive the Qatari head of government on Monday. He said new attacks on Iran would be “very unlikely” given good talks. However, the core issues of successful negotiations remain far from agreement. Since the beginning of the attacks, the USA has wanted the end of the Iranian nuclear program, but Iran has refused to do so.

Andreas Lipkow sees a particular focus on individual values ​​on Monday. On the one hand, due to the significant price declines of some stocks, but also on the basis of convincing quarterly figures. This creates potential for broader diversification on the stock market.

Look at individual values

Hannover Re: The reinsurance company, which is listed in the Dax, confirmed its annual targets after the third quarter. The share still lost 1.5 percent.

Gea: The plant manufacturer also confirms its forecast for robust figures in the third quarter. However, the share price is unchanged.

Unicredit and Commerzbank: The major Italian bank reported record profits for the third quarter and wants to get started with Commerzbank earlier. In addition, the German financial institution is to be merged with the Unicredit subsidiary Hypovereinsbank as quickly as possible. Commerzbank shares gained three percent, Unicredit shares gained five percent.