It’s been a wait-and-see kind of month: The blue-chip DAX index in Germany has briefly climbed above the psychologically-important 10,800 point mark several times since September, only to hit a ceiling and trade sideways.
All around the world, investors are waiting for November 8. In Germany, the U.S. presidential election could be the spark that triggers either a sustained breakout above 10,800 points or a major sell-off, depending on who wins and under what conditions.
Investors naturally hope for the former. Last week, the DAX reached a new high for the year of 10,827 points, defying predictions of an October crash and raising expectations for a year-end rally. Yet the markets remain cautious despite the recent upturn, according to a Handelsblatt survey of 2,300 investors.