The German DAX index has powered to a new all-time high, breaking through the 24,680-point mark right at the start of trading. The momentum didn’t stop there, with the index pushing on to a peak of nearly 24,709 points in the opening minutes. This comes after the leading German index closed the previous day up by almost one percent at 24,597 points. Currently, the DAX is trading at 24,638.30 points, a gain of 41.17 points or 0.17%.
Geopolitical Hope Fuels Investor Optimism
A positive mood is sweeping through the stock market, largely fuelled by hopes for a resolution to the political crisis in France and an end to the war between Israel and Hamas. A strong performance from technology stocks in both Asia and the United States has also provided a significant tailwind for the market.
Technical analysts from HSBC are viewing the successful breakout as one of the most powerful signals in technical analysis. They are now projecting a potential upside of another 1,200 points, which could see the DAX heading towards a future target of around 25,800 points.
Economic Worries Brushed Aside
For now, investors seem to be brushing aside the persistent problems plaguing German industry, where production has continued to slump. The latest export data also points to ongoing economic weakness, with exports unexpectedly falling by 0.5 percent in August to €129.7 billion. This came as a surprise, as most experts had been forecasting a slight increase.
“This is the third heavy blow this week,” commented Thomas Gitzel, Chief Economist at VP Bank. “Both incoming orders and industrial production have already surprised on the downside. It shows once again that German industry was navigating some very difficult waters over the summer.”
US Stock Focus: Zevia PBC
Meanwhile, in US markets, beverage company Zevia PBC (ZVIA) is seeing some activity, with its stock trading at $2.30, up $0.02 (0.88%). Headquartered in Los Angeles, California, Zevia is known for developing, marketing, and distributing zero-calorie soft drinks. Founded in 2007, its product line-up includes sodas, energy drinks, organic teas, mixers, children’s drinks, and sparkling water.