DAX edges closer to record high as chip stocks extend wild rally
The DAX is moving closer to its record high as investors chase semiconductor stocks, while Amazon and Apple receive sharply different reactions after earnings.
Chief Market Analyst
Chip stocks power another rally in Asia
Global investors continue to pile into semiconductor stocks, fuelling another powerful rally across Asian equity markets.
South Korea's Kospi surged by more than 14% at one stage, while Japan's Nikkei 225 also advanced sharply on the back of strong demand for chip-related shares. The momentum is increasingly taking on speculative characteristics as investors continue to chase AI-driven technology names.
BoJ stays cautious as China data weakens
As widely expected, the Bank of Japan left interest rates unchanged at today's policy meeting, reiterating that it will continue to monitor inflation developments closely.
The message echoed recent communications from both the Federal Reserve and the Bank of England, with policymakers maintaining a cautious stance while keeping future policy options open. In contrast, weaker-than-expected economic indicators from China pointed to a further moderation in economic activity, reinforcing concerns over slowing growth in the world's second-largest economy.
Amazon rallies while Apple comes under pressure
Corporate earnings once again delivered a mixed picture overnight, with Amazon and Apple received very differently by investors.
Amazon shares rallied strongly after another impressive quarter, driven by robust cloud computing revenues and continued strength across its broader business. Apple, by contrast, came under heavy selling pressure. Although iPhone sales exceeded expectations, weaker-than-anticipated growth in the company's high-margin services division disappointed investors.
DAX closes in on its record high
Against this backdrop, the DAX is poised to extend its recent advance and could challenge its all-time high before the weekend.
The 25,900-point level is now within striking distance, and today's US macroeconomic releases, including the ISM Manufacturing PMI and consumer sentiment data, are unlikely to derail the current positive momentum.
DAX expected to trade between 25,650 and 25,950
From a technical perspective, the DAX is expected to trade within a range of 25,650 to 25,950 points during today's session.
DAX seen opening slightly lower as Fed keeps rate hike option alive
The DAX is expected to open modestly lower after the Federal Reserve left rates unchanged but kept further tightening on the table, while investors digest mixed results from Meta, Microsoft and Airbus ahead of a packed macro calendar.
