FRANKFURT (dpa-AFX) - With the DAX struggling in terms of chart analysis, there is a big question mark hanging over the recovery to over 24,000 points that investors had hoped for in the new trading week. The index, which recently lost touch with the round mark, is likely to face further headwinds if positive momentum from the expiring reporting season fails to materialize and enthusiasm for the AI boom, particularly in the US, continues to wane.
Some investors are growing concerned about the huge liquidity appetite of powerful AI companies, wrote Commerzbank analyst André Sadowsky. Investors are questioning whether the huge investments will prove profitable enough to justify current share prices.
In the reporting season, it will once again be important in the coming days not only for companies to have performed well in the past quarter and to give optimistic forecasts, but also to exceed market expectations. Otherwise, profit-taking could once again weigh on stocks that have performed well this year.
The equity experts at Landesbank Helaba note that during the reporting season in the US, companies have mostly surprised on the upside, while in Germany, corporate earnings have been weaker. Given the high company valuations, the improvements in earnings were not sufficient to drive further price increases.
Numerous companies from the DAX will be opening their books in the new trading week. Reinsurers will kick things off, with Hannover Re on Monday and Munich Re on Tuesday. Porsche Automobil Holding will also report on Tuesday. Two utilities, RWE and Eon, will follow on Wednesday. Chemicals distributor Brenntag, chip manufacturer Infineon, and pharmaceutical and agrochemical group Bayer will also present their third-quarter figures in the middle of the week.
Deutsche Telekom, Siemens, and pharmaceutical and specialty chemicals group Merck KGaA will follow on Thursday. The quarterly results of energy technology company Siemens Energy and insurer Allianz will round off the picture on Friday.
The publication of important US macro data – consumer prices are actually on the agenda for Thursday and retail sales and producer prices for Friday – remains to be seen. Due to the partial shutdown of federal agencies, no economic data is currently being published. The shutdown has been ongoing since October 1 – longer than ever before in US history.
Without this economic data, which is also important for the stock market, investors remain in the dark about economic developments in the world's largest economy. This is detrimental to investment sentiment and may contribute to the hoped-for year-end rally finally being pulled the plug on./ajx/ag/mis
--- By Achim Jüngling, dpa-AFX ---
