📈DE40 at new ATH above 20,000 points

⚡European stock market extends gains

Futures on Germany's DAX (DE40) continue its rapid rise, which has now continued uninterrupted for 5 sessions in a row. The breakout of historic highs, along with very good sentiment overseas, where U.S. indices are also breaking through their historic peaks, reassures investors that the end of 2024 on the stock markets may be in an optimistic mood. Also, macro data from China's services and industry came in above forecasts, another 'positive' point for stock markets and emerging markets. 

• Another session 'winner' on the German trading floor was the armaments conglomerate Rheinmetall (RHM.DE). The company will create an artillery munitions factory, in Lithuania. The company's shares rose nearly 2.5% today, and the investment will be worth about 180 million euros; production of 155mm ammunition is expected to start in the first half of 2026
• Shares of Hugo Boss (BOSS.DE) are up more than 7% today after a rating upgrade at UBS, which issued a 'buy' recommendation with a target price of €49 per share, citing rising consumption in markets in Europe, the Middle East and North America; amid the company's limited exposure to the Chinese market.

The key macro report today were US ISM data for the service sector. The reading from the US indicated weaker-than-expected sentiment in this key area of the economy, which directly affected Wall Street indexes. A lower reading is potentially a greater chance of faster rate cuts in the US, and this could support local companies in the medium term. Interestingly, however, the price sub-index (that is, the report correlated with the CPI data) indicated that price pressures in the economy remain at relatively high levels. Markets expect that ECB will probably cut rates even more than the Federal Reserve, potentially supporting European stock market.

DE40 (D1, H1 interval)

DE40 broke through its historical peaks on Monday, thereby confirming the overall uptrend that has continued uninterrupted since July of this year. In the near term, it is the maintenance above the peak zone and the psychological barrier of 20,000 points that may define whether the index will continue to sustain the bullish trend in the medium term.

Source: xStation5

Looking at the hourly interval (H1), we see that the ongoing upward impulse resembles that of September 2024; the price is close to testing the upper limit of the upward channel, near 20050 points. Analyzing the volume, we can see that today's increases were largely due to the lack of activity of the supply side, which makes the scenario of further increases within the framework of the so-called resistance discovery phase, after the new ATH is broken out, more likely.

Source: xStation5