DAX at new all-time-highs 16,550 level before the weekend! ⚡
- The prospect of further policy tightening by the ECB does not deter bulls
- The mood in Europe is supported by the strength of both U.S. and Asian indices, where Chinese indices rebound because of hopes that the PBOC will stimulate the economy
- Shares of Zalando, Sartorius, e.On and Covestro are doing well. Deutsche Bank loses close to 3%
The end of the most interesting week in June is exceptionally good for the German market, where the benchmark DAX, represented by them, enters new historical peaks. We can see DE30 futures rally (with even extened magnitude) due to the rolling of futures contracts ('three hags' - the third Friday of each final month of the quarter).
Despite the hawkish tone of yesterday's speech by Christine Lagarde and the accelerated by nearly €10 billion QT program at the ECB, investors continue to buy German 'bluechip' stocks. Also, hawkish statements by Bundesbank President Nagel and ECB's Wunsch did not put pressure on profit-taking. Although it is almost certain that the ECB will raise rates in July and possibly also in September, investors are positive about the overall labor market situation and positive consumer sentiment. In addition, Lagarde's statements allow investors to believe in a 'soft landing' of the European economy. Thanks to the strength of consumers, German companies can still pass on rising costs to customers. 
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appGerman DE30 futures are trading up nearly 1.1% today, which takes into account the rollover of the index contract. The benchmark of German companies is climbing to new all-time highs. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
