Good conditions for a year-end rally on the German stock market

Investors on the German stock market can hope for a continuation of the recent upward trend next week, in what experts believe could be the start of a year-end rally.

The DAX closed trading on Friday at 23,836.79 points, up 0.29% on the previous day. Over the week as a whole, the leading German index rose by more than 3%, though the November balance sheet is slightly negative, with a decline of 0.5%.

"AI stocks have been stabilized, the fundamentals from the reporting season are robust, and the US Federal Reserve is set to cut interest rates in December," wrote the authors of the Bernecker stock market letter. The stage is therefore set for a year-end rally, they said. 

From the perspective of capital market expert Robert Halver of Baader Bank, the current stock market mood hinges on whether or not the US Federal Reserve will cut its key interest rate again on December 10.

Even if there is no further interest rate cut, he believes it will be made up for in the coming year.

Investment strategist Mark Dowding of RBC BlueBay Asset Management considers further interest rate cuts likely, as outgoing Fed Chairman Jerome Powell does not want to surprise the markets in the run-up to Christmas. He assumes that this will be Powell's last monetary policy measure.

After the holiday break on the US stock markets, momentum from overseas is likely to pick up again in general. However, there is not too much economic data on the agenda that could influence the Fed's monetary policy.