The new record mark is a reflection of a renewed appetite for risk, fueled by a trilateral combination of falling oil prices, solid business results, and emerging economic growth prospects.
If the supposed trigger for a possible year-end rally last week turned out to be a false signal, the record-breaking run could now gain momentum. The rally is also a testament to confidence. Investors are placing greater weight on opportunities than on risks. A sustained jump above the 27,000-point mark could serve as a breeding ground for a possible year-end rally and open up further upside potential.
However, the path to the north is likely not without obstacles. A triad of stumbling blocks awaits investors, with concerns about interest rates, geopolitical risks, and doubts about artificial intelligence.
DAX chart on a monthly basis
