German DAX index remains steady at 23.625 points, analyst issues caution regarding potential double top formation at 23.400 points

In the financial world, the DAX, Germany's leading stock index, is adapting to a structural change following the exit of Porsche AG. This departure, coupled with the inclusion of Gea and Scout24, signifies a shift in the German industry. The Deutsche Börse cannot ignore this transformation.

On Thursday morning, the DAX started the trading day with minimal changes, with the index calculated at approximately 23,625 points around 9:30 AM. However, the European common currency (Euro) was slightly weaker. One Euro was worth 1.1646 US dollars, while one dollar was worth 0.8587 euros.

The DAX's performance has been a topic of discussion, with some investors hoping for support from the Federal Reserve. The next Federal Reserve meeting to discuss possible interest rate changes will take place on September 17, 2025, with the policy decision announced at 14:00 Washington time and a press conference by Fed Chair Jerome Powell 30 minutes later.

The rising global public debt has become a dominant theme at the stock exchange, but as long as auctions of new government bonds don't fail, there's no cause for immediate concern. Japan's bond auction today was successful.

Weak stocks are leaving the DAX, and strong ones are taking their place, according to Jochen Stanzl, Chief Market Analyst at CMC Markets. Stanzl stated that buying the DAX when it drops a bit has worked well in early August.

However, the market is not without its risks. The August low around 23,400 points is now a crucial reference point. If the market slips below that, a double top could form. Furthermore, if the jobs data comes in too strong and inflation proves too hot next week, the Fed may not be able to switch to a faster pace of rate cuts.

Despite these challenges, the DAX is currently managing to stabilize. Investors are expecting five rate cuts in the next twelve months, and the quick recovery that occurred in previous days did not happen on Thursday. As a result, more than half of the losses were not recovered.

Looking ahead, further losses down to the 22,000 level are not being ruled out. However, the DAX's ability to adapt to changes is a positive development. This structural change, while significant, is a testament to the resilience of the German industry and the DAX.

German DAX index remains steady at 23.625 points, analyst issues caution regarding potential double top formation at 23.400 points