DAX extends consolidation as positive sentiment lifts Asian markets into quarter-end

Asian markets take their lead from Wall Street

Wall Street's strong start to the week laid the foundation for a positive trading session across Asian markets. Investor sentiment was further supported by stronger-than-expected purchasing managers' indices from China, raising hopes that the world's second-largest economy may be moving towards a gradual recovery.

Both the manufacturing and services purchasing managers' indices came in slightly above the 50-point expansion threshold, indicating modest economic growth. Exports continue to provide the backbone of China's economy. Meanwhile, investors in Japan and South Korea continued to favour semiconductor and artificial intelligence stocks, extending the rally across regional technology sectors.

Technology stocks remain in demand

The final trading day of the second quarter was particularly significant, as it also provided an indication of investors' positioning ahead of portfolio rebalancing at the start of the new quarter. Technology stocks remain firmly in demand, suggesting that market momentum is still intact.

A similar pattern is emerging in Germany, where yesterday's winners remain today's favourites. Ahead of the opening bell, Siemens Energy and Infineon are once again among the strongest performers.

DAX expected to consolidate near 25,000

Later today, investors will focus on eurozone inflation data, US consumer confidence figures and the Job Openings and Labor Turnover Survey report. Against the backdrop of typically lighter summer trading volumes, the DAX is expected to continue consolidating around the 25,000-point level.