The DAX’s recent surge toward record levels has hit a ceiling, with upward momentum stalling as investors weigh persistent geopolitical risks against fading expectations of US interest rate hikes.
While the macroeconomic backdrop has improved, with the likelihood of further Federal Reserve tightening diminishing, market participants remain cautious about the sustainability of the rally.
The DAX traded largely unchanged on Monday, hovering around 24,697 points, before attempting a modest recovery.
The primary headwinds capping the index’s advance are twofold: ongoing instability in the Middle East and growing skepticism regarding the artificial intelligence sector.
These factors are tempering risk appetite, preventing the German benchmark from extending its recent gains despite a more favorable rate outlook.
This hesitation follows a period of consolidation earlier in the week.
The DAX traded largely unchanged on Monday, hovering around 24,697 points, before attempting a modest recovery.