Money Peak 24h Report

Good evening, valued Money Peak Community,

The past 24 hours have delivered a notable trading day, with the DAX reaching record territory and Deutsche Bank staging a remarkable rally. Markets remain optimistic, buoyed by AI-driven growth prospects and robust U.S. economic data, while interesting sector rotations are becoming evident.

⚡ Money Peak 24h Snapshot

• Deutsche Bank posts highest profit since 2007 – shares surge nearly 9%
• AI remains growth engine for markets and economy according to ING analyst Brzeski
• U.S. services sector exceeds expectations (PMI 55.2 vs. expected 53.2)
• Market divergence: S&P 500 at all-time high, Russell 2000 (small caps) lags behind
• Central banks slow pace of interest rate cuts due to persistent inflation

💹 Current Market Drivers in Focus

Artificial Intelligence Continues to Drive Growth

The AI revolution remains the central driver for markets and economic growth. ING economist Carsten Brzeski emphasizes: "AI remains the big story – not just for markets but also for economic growth" [1]. Particularly the quarterly results of major U.S. tech companies like Alphabet are providing tailwinds for markets.

Banking Sector Soaring

Deutsche Bank recorded its highest profit since 2007 in the second quarter of 2025 and confirmed its annual targets. CEO Christian Sewing expressed confidence in the bank's continued development [2]. The banking sector as a whole is driving the DAX toward new records.

International Trade Agreements Strengthen Markets

A new trade agreement between Japan and the United States has enhanced the attractiveness of international equities. The Vanguard International Stock ETF consequently posted significant gains (+21.8% YTD) [3]. The forthcoming free trade agreement between India and the United Kingdom also demonstrates that international trade continues to progress despite geopolitical tensions.

Central Banks Becoming More Cautious

The momentum of central bank rate cuts is slowing as many countries approach the end of their easing cycles. Persistent inflation is leading to caution regarding further rate adjustments [4]. In the U.S., Federal Reserve Chair Jerome Powell faces political pressure, creating additional uncertainty about the future interest rate path.

📊 Market Data Overview

Major Indices

Top and Bottom Performers in the DAX

Top Performers:

Bottom Performers:

Commodity Prices

Currencies and Bonds

🔍 Our Focus Topic: Sector Rotation in the DAX

While the DAX overall posted moderate gains, a distinct rotation between sectors is evident. Banking and telecommunications (Deutsche Bank +8.97%, Deutsche Telekom +4.99%) recorded strong gains, while technology stocks such as Infineon (-5.12%) and industrial companies like MTU Aero Engines (-4.44%) came under pressure.

This development reflects a broader trend: the concentration on a few market winners is gradually dissolving, and investors are increasingly seeking undervalued sectors with stable earnings prospects. Particularly noteworthy is the strength of Deutsche Bank, which benefited from its best quarterly result since 2007.

Simultaneously, weakness at Infineon suggests that the technology sector could be entering a consolidation phase after its strong performance in recent months. MTU Aero Engines incurred losses despite good quarterly figures, indicating profit-taking following its recent record high [5].

💡 Money Peak Assessment: What the Last 24h Mean for You as an Investor

No Immediate Action Required, but Caution with Tech Stocks

The current market situation provides no reason for hasty actions. However, investors with high exposure to the technology sector should consider selective profit-taking, as Infineon's weakness could be a warning signal for the entire sector.

The strong performance of banking and telecommunications shows that a broader market rotation is underway. This suggests a more balanced portfolio structure with exposure to various sectors would be prudent.

These Themes Should Be on Your Radar in the Coming Days/Weeks:

1. Market Breadth and Sector Rotation: The divergence between mega-caps and smaller stocks (S&P 500 vs. Russell 2000) indicates an unhealthy market structure [6]. Watch for signs of a broader market rally or further concentration.

2. Central Bank Policy: The slowing pace of interest rate cuts could burden markets in the medium term. Signals from the Fed regarding its future course are particularly important.

3. International Trade Agreements: The new agreements between Japan-USA and India-UK could make international investments more attractive and should be considered as diversification opportunities.

4. Labor Market Data: The robust U.S. labor market (sixth weekly decline in initial jobless claims) supports the economy but could also deter the Fed from rapid interest rate cuts [7].

📆 Outlook: Today's Important Events

08:00 CEST (DE): Consumer Confidence (Aug)

14:30 CEST (US): Initial Jobless Claims (Jul/19)

15:45 CEST (US): S&P Global Services PMI (Jul)

16:00 CEST (US): New Home Sales (Jun)

References:

[1] Brzeski: AI remains the big story not just for markets but also economic growth. youtube.com

[2] Deutsche Bank verdient so viel wie seit 2007 nicht. finanznachrichten.de

[3] Japan Trade Deal Boosts Return Premium For Foreign Stocks. seekingalpha.com

[4] Big central bank rate cuts slow with tariffs and politics in headlights. reuters.com

[5] Börsenkurse und DAX-Entwicklung. boerse.de

[6] Market indexes are at all-time highs — except this one. What this means for stocks. marketwatch.com

[7] Jobless claims drop for sixth straight week, as labor market is showing no signs of stress. marketwatch.com