FRANKFURT (dpa-AFX) - The DAX is likely to start Monday's trading session virtually unchanged. Around two and a half hours before the start of trading on Xetra, broker IG valued the leading German index two points lower at 24,026 points.
After a weak start to December, the DAX ultimately gained 0.8 percent last week. Its recovery only stopped in the area of the correction trend that has formed since the record high of 24,771 points in October. Its return above its 50- and 100-day moving averages – barometers for medium- and long-term trends – is also causing it problems.
Portfolio manager Thomas Altmann of QC Partners had already pointed out on Friday how calm the market had become, as reflected in the European volatility index, which recently hit a three-month low.
However, the US Federal Reserve could bring some movement again this week when it announces its key interest rate decision on Wednesday evening. Market strategist Mislav Matejka warned against overly high expectations, however. With an interest rate cut now firmly expected and the stock market back within sight of its highs, investors could succumb to the urge to take profits with Christmas approaching.
