The DAX could challenge 26,000 this week as falling oil prices, demand for German shares and gains in Asian markets support sentiment. However, Apple earnings, US midterm elections and fresh economic data are likely to determine whether the index can sustain its advance.
Apple is the immediate focus, with the company due to report earnings on Monday evening. Results will provide an important test of technology sector sentiment following recent concerns about the cost of artificial intelligence investment and the ability of major companies to generate sufficient returns.
Technology and semiconductor shares remain under pressure from increasingly demanding earnings expectations. Investors are looking for clear evidence that substantial AI spending is translating into revenue growth and profitability. Disappointing forecasts have already triggered sharp reactions across the sector, making Apple’s results particularly important for global market sentiment.
The US midterm elections on Tuesday add another source of uncertainty. A potential loss of the Republican majority in Congress could restrict the administration’s ability to implement its policy agenda, with implications for financial markets and economic expectations.
Economic data will also influence market direction. Upcoming US purchasing managers’ indices and inflation figures should provide further insight into economic activity and the persistence of price pressures. The results could affect expectations for interest rates, particularly following recent central bank decisions.
For German equities, lower oil prices provide some support by easing pressure on energy costs and inflation expectations. Continued demand for major German companies and a positive contribution from Asian markets could help the DAX maintain its upward momentum.
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