The German DAX Index, Europe’s most closely watched benchmark, posted a steady performance this week, rising modestly while maintaining its multi-month upward trend. Investors remained cautiously optimistic as eurozone macro data supported expectations of easing monetary conditions, contributing to a constructive tone across European and global equity markets.

Steady Weekly Performance Despite Narrow Intraday Movement

Throughout the week, the DAX traded in a relatively tight range, with daily movements reflecting calm market conditions ahead of the holiday period. The index hovered around the 24,250–24,350 zone, ultimately closing the week at 24,340.06, a gain of 56.09 points.

Light trading volumes — a common feature in late December — did not prevent the index from achieving a positive weekly result. The narrow fluctuations indicate a market that remains confident but measured, particularly as German and European corporates show signs of stabilizing earnings heading into the new year. For Israeli investors monitoring European exposure, the DAX’s resilience underscores ongoing strength in developed markets amid global risk rotation.

Macroeconomic Tailwinds Support European Equities

Eurozone inflation data released earlier in the week pointed to further price moderation, reinforcing expectations that the European Central Bank may adopt a more dovish tone in early 2026. Lower inflation reduces pressure on borrowing costs and supports valuations, especially in Germany’s industrial and export-heavy sectors.

Additionally, improving manufacturing sentiment across Germany and France contributed to a firmer outlook for the region’s cyclical sectors. These developments helped maintain the DAX’s upward bias despite subdued intraday action.
Global sentiment, including in Israel’s שווקי ההון, also remained constructive as risk assets benefited from declining bond yields and softer U.S. dollar strength.

Technical Positioning Strengthens the Long-Term Uptrend

From a technical standpoint, the DAX continues to trade near record territory, with the 52-week range extending from 18,489.91 to 24,771.34. The index’s ability to stay above 24,300 throughout most of the week highlights a supportive demand zone.

While the intraday chart showed a gradual drift lower before stabilizing, the broader weekly trend remains firmly positive. The index’s closing level of 24,340.06 represents its latest attempt to consolidate gains before potentially retesting the upper boundary of its 52-week range. This positioning suggests investors are still comfortable holding European equities despite global macro uncertainties.

The outlook for the DAX heading into early 2026 will depend heavily on central bank signals, energy-price stability, and the trajectory of global manufacturing. Should the ECB hint at policy easing or if eurozone economic indicators continue improving, the DAX may find renewed momentum. However, elevated geopolitical risks and sensitivity to global trade flows remain important considerations. Investors will be watching whether the index can sustain support above 24,300 — a key sign of continued market confidence.