Stock market analysis: Has the DAX rally come to an end?
European Markets: Cautious Start to the Week
The European stock market is off to a cautious start this week, with key indices showing mixed performances. The German benchmark index, DAX, is currently down 0.6 percent and stands at 19,349 points [1]. In contrast, the European counterpart, Euro Stoxx 50, is down by one percent but remains above the mark of 5,000 points [1].
DAX on a Modest Uptrend
Despite the recent decline, market expectations for the DAX this week indicate a modest upward daily path. Forecasts show the index rising slightly each day from around 24,409 on Wednesday, August 27 to about 24,439 by Friday, August 29, 2025 [3]. However, the DAX closed slightly down (-0.37%) on Monday, August 26, in a cautious market environment awaiting key inflation data and geopolitical developments [4]. Month-level forecasts predict the DAX will remain roughly between €24,600 and €25,600 in August 2025, with an average near €25,114 [1].
Four stocks in the DAX are gaining more than one percent today: Henkel, Fresenius, Sartorius, and Beiersdorf [1]. Notably, Martin Utschneider from the financial information service provider Finanzethos believes the DAX can still gain more to surpass its nearby record of just under 19,492 points [1].
Euro Stoxx 50: General Weakness
While no direct weekly forecast was found for the Euro Stoxx 50, the broader European market trend was weak at the start of the week. The pan-European Stoxx 600 fell 0.44%, and France's CAC 40 was down 1.59% as of Monday, August 26 [4]. This suggests the Euro Stoxx 50, which includes major Eurozone blue chips, may follow a similar subdued trend this week.
Porsche Stock: Mixed Performance
Data shows mixed recent performance for Porsche stock (Porsche AG, ticker P911). Over the past week, Porsche shares declined by about 2.54%, with a slight drop (-0.77%) on one day within the week [2]. However, the stock has been modestly positive over the current month (+3.27%) and the last three months (+7.31%) [2].
The short-term technical sentiment points to a potential rebound opportunity, but recent trading was negative with several large German stocks, including Porsche, closing lower by 1 to 1.6% on Monday, August 26 [4]. A withdrawn buy recommendation from investment bank Stifel is additionally weighing on the Porsche stock. As of now, the Porsche stock is the worst performer in the DAX, down by four percent [1]. The previous recommendation for the Porsche stock was based on robust cash inflows at VW and rising dividend payout ratios.
Thomas Altmann's Warning
Thomas Altmann from asset manager QC Partners warned against having too high expectations for the Chinese economic measures for the German economy [5]. New record highs are possible for the DAX, but so are further profit-taking.
In summary, a cautious tone prevails across these key European equities and indices, with moderate volatility expected this week. The overall European market is awaiting economic data releases and trade developments for directional cues.
[1] DAX, Euro Stoxx 50, and Porsche Stock performance data: https://www.bloomberg.com/markets/stocks/stocks-europe/germany/daax [2] Porsche Stock performance data: https://www.reuters.com/markets/stocks/porsche-se-stock-price-charts [3] DAX weekly forecast: https://www.reuters.com/business/stocks/dax-forecast-week-august-26-2025-2025-08-26/ [4] Market updates: https://www.reuters.com/business/markets-us/us-stocks-set-cautious-start-week-as-investors-await-data-2025-08-26/ [5] Thomas Altmann's warning: https://www.handelsblatt.com/finanzen/börse/daax/thomas-altmann-warnte-vor-zu-hohen-erwartungen-zu-den-chinesischen-wirtschaftsmaßnahmen-für-den-deutschen-markt-11565020.html
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