Customs dispute, Tesla, Rheinmetall, E.on, Bayer, Siemens, DHL, Allianz, Shell remain key factors influencing a slight increase in the DAX index.
The DAX index, a key indicator of the German stock market, has been in the spotlight recently due to developments in trade tariffs and the approaching deadline for a trade agreement between the USA and the European Union.
As the new week begins, the German leading index is expected to rise by 0.2 percent, with broker IG estimating it at 23,846 points. However, the DAX closed at 23,787.45 points on Friday, marking a 0.6 percent decrease for the day and a 1 percent decrease for the week.
Meanwhile, the CSI 300, which includes the most important Chinese mainland stocks, is trading 0.5 percent lower on Monday morning, while the Hang Seng of the Chinese special administrative region of Hong Kong is down 0.3 percent.
Short-term predictions for the DAX in July 2022 suggest a steady recovery, with the index forecasted to start at around 23,007 and end at approximately 23,149, showing a change of about 0.6% for the month. In the coming months, the index is expected to grow gradually, with predictions for August and September showing slight increases.
Looking further ahead, by the end of 2022, the DAX is predicted to reach around 26,668, reflecting an 11% increase from its current value. Over the next few years, the index is expected to continue rising, reaching 25,000 by the end of 2024 and 30,000 by 2026.
While specific stock predictions for companies listed on the DAX are not detailed in the current forecasts, the overall trend suggests that many of these companies could benefit from the index's projected growth. Key sectors such as technology, automotive, and pharmaceuticals are likely to influence the DAX's performance. Companies like Volkswagen, Siemens, and Bayer could see their stock prices rise if the broader market trends upward.
Analysts have adjusted their predictions based on recent economic data and market trends. Stifel, for example, has downgraded the shares of Merck KGaA from "Buy" to "Sell" and significantly reduced its price target from 153.00 euros to 100.00 euros. On the other hand, Bernstein has become more optimistic about Kion, increasing its price target from 49.00 euros to 54.00 euros.
JPMorgan has upgraded ProSiebenSat.1 from "Neutral" to "Overweight" and raised its price target from 7.00 to 11.00 euros, while Berenberg has raised its price target for Allianz from 419.00 euros to 431.00 euros.
Investors should consider both short-term market fluctuations and long-term economic trends when making investment decisions. It's important to keep an eye on key events such as the expected figures on the development of industrial production in Germany for May, which are due to be released in the morning of the new week.
Elsewhere, Elon Musk, CEO of Tesla, has announced plans to found a new political party, causing a stir, and Shell and Respol will publish their second-quarter results. The private bank Berenberg has also reported that Bitcoin did not trade in the USA on Friday due to the Independence Day holiday. The fine ounce of gold is being traded at 3,311 dollars on Monday morning.
As always, DER AKTIONÄR will report on all important developments and news on the national and international markets throughout the day.
The overall trend suggests that key sectors in the German industry such as technology, automotive, and pharmaceuticals could benefit from the DAX's projected growth, with companies like Volkswagen, Siemens, and Bayer potentially seeing their stock prices rise if the broader market trends upward. In finance, investors should consider both short-term market fluctuations and long-term economic trends when making investment decisions, keeping an eye on key events such as the expected figures on the development of industrial production in Germany for May.
