In the latest episode of the HSBC Daily Trading podcast, Jörg Scherer, the head of Technical Analysis at HSBC, delves into the world of precious metals, specifically focusing on gold in a chart check. But let's shift our attention to another sector that might make waves in 2024 - DAX.
You might want to keep DAX on your radar for the upcoming year, as it could surprise us with its performance. Jörg Scherer, a financial expert, often touches upon such analyses in his weekly sessions on the HSBC Daily Trading podcast.
Now, let's look at the bigger picture. Although DAX has been setting new record highs and boasting significant gains year-to-date, there are concerns about the sector's economic fundamentals. Germany's economic landscape is facing challenges like an economic slowdown, industrial strife, and political uncertainty. These issues have the potential to cause a correction in the DAX.
On the brighter side, European equities, including DAX, are predicted to display earnings growth in 2025. This growth is boosted by a weak euro and structural trends in sectors such as industrials and pharmaceuticals.
However, not all sectors within DAX are equal. The tech sector is projected to rebound to double-digit growth, while the automotive sector faces structural challenges due to the shift towards electric vehicles.
In conclusion, while there are compelling reasons for a positive market performance, there are also underlying economic and sector-specific challenges that could shape DAX's trajectory in 2025. Keep your eyes peeled, as this sector may deliver some unexpected surprises!
