Uninterrupted Surge in the DAX Continues, Spotlight on Siemens Energy and Merck Shares

Uninterrupted Surge in the DAX Continues, Spotlight on Siemens Energy and Merck Shares

Unleashing the DAX’s January Magic - A Peek into the Future, as Siemens Energy and Merck Tread the Market

The German powerhouse, the DAX, is riding high, smashing records for the first time at midday at 21,800 points. It surged 0.15 percent, standing tall at 21,758 points, while its European counterpart, the Euro Stoxx 50, gained 0.2 percent, hitting 5,292 points. The DAX, which has gained 1.8 percent this week, is on pace for a remarkable month, boasting a 9.4 percent increase so far - a figure unsurpassed since 2012.

Fears surrounding AI competition from China dissipated swiftly as the DAX, blazing a trail, proved its invincibility. Jack Janasiewicz, a portfolio manager at Natixis IM Solutions, foresees AI accelerating the growth rather than stifling it. If efficiency can be maintained with lower costs, tech firms' profits will skyrocket, and so will overall economic productivity. Janasiewicz hypothesizes that higher capital returns may lead to increased investment in AI, not a reduction.

Interest rate decisions from the European Central Bank have failed to topple the DAX, with thebank supporting the Eurozone's sluggish economy with lower rates. Market observer Robert Halver of Baader Bank anticipates a long-term continuation of the rally, indicating that the ingredients for a sustained climb are still intact.

However, a few experts have raised caution flags, cautioning that a much-needed correction may be looming. Halver recommends staying vigilant and keeping ears open for news regarding inflation, interest rate expectations, big politics, and earnings season. He believes that a "release of pressure" would present a golden opportunity for investors to find attractive bargains.

DAX (WKN: 846900)

Siemens Energy and Merck shares taking the limelight

Currently, the crown jewel in the DAX is Siemens Energy's share, which climbed 3.7 percent today. The share has bounced back from its initial setback this week, targeting its record high of 60.40 euros next. The Chinese startup DeepSeek, which demonstrated the potential for AI software to learn with less computing power, had initially rattled Siemens Energy after fears of high energy consumption. However, the company's recent quarterly figures have instilled confidence among investors.

Meanwhile, Merck KGaA's share, the DAX's bottom performer, slipped 2.77 percent today, stabilizing its recent recovery attempt. Deutsche Bank Research has decreased its price target for Merck from 180 to 174 euros, while maintaining a "Buy" rating. Analyst Falko Friedrichs predicts strong quarterly results from the Darmstadt-based company, based on his latest outlook.

Expert Insights:

• Jason Janasiewicz, Portfolio Manager at Natixis IM Solutions: "More efficient artificial intelligence will not halt the booming market, but expedite it. If the same performance can be achieved with lower costs, not only tech companies' margins will soar, but overall economic productivity will surge as well."

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• DeepSeek Wreck Just the Start? Renowned Expert Warns of More Severe Adjustments Ahead

1. The surge in the DAX, as evidenced by Siemens Energy's share performance, indicates a prominent role of industry in this bull market.
2. The future of personal-finance and business could significantly benefit from the advancements in artificial-intelligence, as argued by Jason Janasiewicz from Natixis IM Solutions.
3. Despite strong performances from companies like Siemens Energy, some experts caution that a correction in the DAX may be imminent, calling for investors to remain vigilant.
4. In the realm of technology, the success story of Siemens Energy and Merck shows the crucial influence of innovation and finance in the DAX's trajectory.

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