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Professor Ali Gamal Abdel gawad : Despite selling pressure, the DAX 30 remains positive, supported by strong German economic fundamentals.

Prepared by: Professor Ali Gamal Abdel Gawad – Lecturer of Finance and Investment.

The German DAX 30 index declined by 1.29% to close at 24,671.22 points, affected by a natural correction following a strong rally in recent months. However, the index is still trading near its yearly highs, reflecting continued investor confidence in the German market.

Technically, the index maintains its upward trend as long as it remains above the support level of 24,500 points. A break above 25,000 points would be a positive signal for further gains towards the yearly high of 25,507 points and potentially new highs.

From a fundamental perspective, listed companies are benefiting from improved European industrial demand and a stable business environment, along with expectations of lower financing costs as inflation recedes. This supports the valuations of German stocks. 

Financial indicators also demonstrate continued strong long-term performance, with the index rising 58.07% over five years, despite limited declines this month. This confirms that the current movements are part of a healthy correction within an upward trend.

The outlook remains cautiously positive, with investors awaiting European economic data and corporate earnings reports, which will determine the index's ability to regain momentum and continue its upward trend in the coming period.

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