The broker IG Markets estimates the German leading index half a percent higher to 26,561 points before the opening of Xetra trading. This means that the record level of 26,619 points is getting closer and closer. On Wednesday, the DAX rose by 2.2 percent to 26,437 points. At the top, with almost 26,542 points, he was only 78 points short of the record.
Investors are reacting euphorically to the result of the US midterm elections: If the current momentum continues, the DAX could test its all-time high in the coming days, says Salah-Eddine Bouhmidi from broker IG.
“The prerequisite is that buyers continue to maintain the breakout above 26,000 points,” said the expert. "Today's euphoria improves the short-term market picture, but geopolitical uncertainties and the risk of sharp setbacks remain."
What could be the concrete consequences of the election results? “The changed political balance of power could make American budget policy more disciplined and thus defuse at least some of the concerns about escalating national debt and long-term high bond yields,” comments Andreas Lipkow, market observer at CMC Markets. The chances of a year-end rally for the DAX have now increased significantly.
The election result sends the signal that US President Donald Trump's policies "cannot be enforced without limits," said Dekabank expert Joachim Schallmayer. Although dramatic changes in course are not to be expected, individual sectors could, in his opinion, be given new framework conditions.
Support also comes from the raw materials markets. Oil prices are falling sharply. Many investors believe that a peaceful solution for the Middle East has now become more likely. If oil prices fall permanently, this would reduce inflationary pressure. This would also improve the profit prospects for many companies.
Brent crude oil from the North Sea fell by 1.0 percent to $93.63 per barrel (159 liters). US oil WTI was 1.5 percent weaker at $86.81.
The Democrats' election victory also gave Wall Street a strong boost. The Dow Jones index of standard stocks closed three percent higher at 53,356 points in the middle of the week. The S&P 500 gained 1.6 percent to 7,688 points. The index of the technology exchange Nasdaq advanced by 1.4 percent to 25,736 positions.
Papers from solar and green energy companies were particularly in demand. However, defense stocks such as Northrop Grumman and Lockheed Martin came under pressure. Investors are expecting President Donald Trump's defense budget to face major hurdles in Congress, now controlled by Democrats.
Falling oil prices are currently also boosting the overall market in Japan. However, technology stocks slumped on concerns about the AI industry. The broader Topix was trading 1.5 percent higher. The technology-heavy Nikkei index, however, fell 0.8 percent to 61,686 points.
“Capital that previously flowed into AI and semiconductors is now being reallocated to other sectors,” said Wataru Akiyama, equity strategist at Nomura Securities. "There is a growing view that Democratic electoral success will delay data center projects, potentially making the current pace of profit growth unsustainable."
In South Korea in particular, concerns about a slowing AI boom after the US midterm elections are weighing on the stock market. The leading index Kospi lost around four percent to 5,459 points. Trading was temporarily suspended after a price slide of more than five percent. The Shanghai Stock Exchange, on the other hand, remained almost unchanged, the index of the most important companies in Shanghai and Shenzhen rose by 0.4 percent.
