DAX Set to Open Lower Amid Global Market Volatility
The DAX index in Frankfurt is set to open lower on Monday, as investors weigh various factors affecting global markets. Among these are developments in Iran, US tariffs against Canada, and profit-taking in the AI sector.
Asian markets provided a weaker lead for European indices, with tech stocks taking a hit due to profit-taking in semiconductor and AI-related companies. Alibaba's capital increase highlighted the significant funding requirements associated with investing in artificial intelligence, leading to substantial losses not only in its shares but also across the broader sector.
Nvidia's quarterly results this week will be closely watched by investors, as they may serve as a crucial test for the sustainability of the AI and semiconductor rally. The Jackson Hole central bankers' symposium later in the week will also draw attention, with comments from monetary policymakers potentially providing fresh clues on interest-rate outlook.
From a technical perspective, the DAX is expected to trade within a range of 25,950 to 26,200 points during today's session.