DAX Analysis September 2024

DAX (Germany 40) Market Analysis for September 2024

The DAX index, representing Germany’s top 40 companies, experienced fluctuations in September 2024, driven by global economic concerns and domestic economic slowdown in the Eurozone’s largest economy.

Key Drivers:

1. Eurozone Growth Concerns: The slowdown in key Eurozone economies, particularly Germany, weighed on the DAX. Industrial production and export data showed signs of weakness, driven by slowing demand from China and other global markets. This created downward pressure on the DAX.
2. Global Economic Trends: Geopolitical tensions and concerns about global growth affected investor sentiment, with many turning toward defensive stocks. However, periods of recovery in global equity markets offered some support for the DAX.
3. ECB’s Monetary Policy: Investors remained cautious regarding the ECB’s policy decisions. Any indications of further stimulus measures could provide temporary relief to the DAX, although structural challenges in the German economy, particularly in manufacturing, remained a concern.

Technical Outlook:

The DAX traded between 15,500 and 16,000 points in September, with the 16,000 level acting as a strong resistance. A breakdown below 15,500 could see the index move toward 15,200, while a push above 16,000 would signal renewed optimism.

Recommendation: For traders, range-bound strategies between 15,500 and 16,000 could be effective. Long-term investors should remain cautious, focusing on sectors that are less exposed to global demand risks, such as utilities and healthcare.