The DAX is expected to start the new trading week at around 25,500 points. Asian markets are providing mixed signals: resilient Chinese economic data offer grounds for optimism, but investors remain sceptical about AI and semiconductor stocks. Despite Wall Street's weak close last week, US equity futures are trading significantly higher this morning, lifting sentiment and raising hopes that the recent AI-sector correction may be pausing.
China's GDP grew by 4.5%, slightly exceeding expectations, while industrial production rose by 5.5%. Retail sales also provided positive signals. The figures keep hopes of a sustained recovery in the final quarter alive, although the key question is whether this momentum can last through year-end.
Equity markets face a potentially decisive week. Growing doubts about the AI boom coincide with an earnings season in which companies must justify elevated valuations with tangible results. Investors want more than promises about artificial intelligence's growth potential: they increasingly want evidence of when heavy investment will start to pay off. Technology companies can no longer count on receiving the benefit of the doubt.
Quarterly results from Meta Platforms and Tesla could therefore trigger significant market moves. Purchasing managers' indices will also take centre stage towards the end of the week. Together, the earnings releases and economic data leave plenty of scope for renewed volatility.
From a technical perspective, the DAX is expected to trade within a range of 25,350 to 25,650 points at the start of the week.
