Dax in record mood: Will financial statements provide new impetus?

Last Updated: 19. Februar 2024By

Neither the global geopolitical situation nor the state of the German economy currently look particularly bright. However, this does not seem to dampen the mood of Dax investors. On the contrary, the leading index continues its record run undeterred.

In the past six months alone, the most important German stock index has gained around 10 percent. The mark of 17,000 points has now been consistently surpassed. Although neither the Federal Reserve nor its European counterpart, the European Central Bank, have yet initiated the expected interest rate hike, traders firmly believe that a rate hike can be expected in the middle of the year. Against this background, traders in Frankfurt will closely study the minutes of the recent Fed meeting, which will be published this week.

Dax companies present annual reports In addition, corporate reports are expected to provide impetus and help determine whether the Dax can continue its rally. While the reporting season in the US is already winding down, several important numbers are still to come in Germany. Annual reports and outlooks from several Dax companies are on the agenda for this trading week alone.

The annual report of the medical company Fresenius is scheduled for Wednesday, followed by Mercedes-Benz and Heidelberg Materials on Thursday. Friday will bring three more interesting ones: the annual reports of BASF, Telekom, and Allianz.

Rheinmetall benefits from armament speculation The biggest winner in recent months is Dax newcomer Rheinmetall. The defense contractor is not only benefiting from the war in Ukraine, but also from the recent comments of potential Republican presidential candidate Donald Trump. Just days before the start of the Munich Security Conference last week, he questioned the NATO security umbrella. Specifically, he said that those alliance partners who do not meet the agreed upon 2 percent defense spending measured against their own GDP cannot rely on US support.

So far, this is just election campaign bluster. But Trump’s first term has already shown that decades-long certainties in transatlantic politics are not necessarily guaranteed when he holds the reins in the White House. In Europe, the question of its own nuclear security umbrella is now on the table โ€“ some see this as overdue, others as premature.

Rheinmetall annual report not expected until mid-March However, Rheinmetall remains an indirect beneficiary of any arms buildup debate. In the past six months alone, the company’s stock has gained more than 50 percent. However, investors will have to wait a while longer for specific business figures. The presentation of the annual report for the past year is not expected until mid-March.

In the beginning of the trading week, there are also some fresh figures from companies in the second and third tier, the MDax and SDax, on the agenda. However, trading is expected to be relatively quiet at the start: the stock market is closed in the US due to a holiday, so fresh impulses from the Dow Jones and Nasdaq are only expected from tomorrow.