Can the DAX reach 20,000 points by Christmas?
Revised Article:
Santa's Sleigh or Tumble Town? The DAX's Christmas Gambit and Other Market Musings
The jingle bells and echoes of "deck the halls" seem to miss their mark on the German stock market as the iconic DAX fails to break the 20k mileston on its Christmas wishlist. After a week of profit-taking, the market gansta left investors with a hangover, as it fell 0.28 percent to hover around 19,829 points on Monday morning. Low trading volumes at the end of the year typically hamper market activity.
Last week's bleeding heart from the Fed's interest rate forecast prompted investors to capitalize on their gains. Consequently, the DAX plummeted to its lowest since the beginning of the month, reversing the previous year-end rally on Friday. Nevertheless, it maintains a respectable 19 percent for 2025 so far.
Meanwhile, the MDAX took a 0.24 percent hit, slumping to 25,488.38 points. The Euro Stoxx 50, the Eurozone's Atlas, also declined by around 0.4 percent.
Streetwise: DAX (WKN: 846900)
While the Wall Street lunch-punners were chomping down their Sloppy Joes, the US automaker Tesla was eying a happy new year in Germany with rising hopes. "Germany's electric car market is undergoing a contraction, but overall, we're more than making up for it," said Tesla's plant chief André Thierig in a chat with the German Press Agency. "We currently cater to a whopping 37 different markets, predominantly in Europe, with a few in the Middle East and Taiwan." Thierig envisions the Berlin-based factory as a shiny beacon in the automotive industry, hinting that electric cars can be manufacturing wonders in Germany.
Tesla's Grünheide story was not a walk in the park, with production disruptions linked to the Red Sea's turbulence and power supply attacks, as well as months of protests against the plant. Yet, Thierig is confident that the company will close the 2025 chapter on a positive note.
Streetwise: Tesla (WKN: A1CX3T)
US research heavyweight, Bernstein Research, appears to have lost a bit of faith in Nike after reviewing the company's quarterly results. Lowering its price target from 109 to 102 US dollars, the firm still maintains its "Ratings Queen" rating. While Nike's second quarter was solid, analyst Aneesha Sherman forecasts a disappointing second half of the fiscal year due to price cuts on outdated lifestyle products. The new CEO initially imposed pressure on earnings per share but anticipates a comeback with strong products and marketing initiatives in the spring.
Streetwise: Nike (WKN: 866993) Contains insights from dpa-AFX
Feeling enlightened about the market's intermediate to long-term prognosis for the DAX, here's the breakdown:
- Short-term: Some volatility or temporary downward pressure due to market jitters and economic factors.
- Medium-term (by Christmas 2025): A possible recovery, with a rebound from the current slump.
- Long-term: A positive outlook, with strong growth forecast through 2026 and beyond.
The DAX's holiday season may still be a bit bumpy, but the long-term picture promises a steady growth trajectory through the end of this year and into 2026. Happy investing, folks!
In light of the market's slump and the DAX's failure to reach the 20k milestone, investors might consider the stock-market as a potential area for profit-taking (finance, investing). Amidst the struggle of the DAX, Tesla, an American automaker, is confident about its growth in Germany's electric car market, presenting an opportunity for investing (finance, investing, stock-market).
