FRANKFURT (dpa-AFX) - The DAX continued its upward trajectory on Tuesday, climbing to just below the 25,000-point mark. However, the unexpectedly sharp drop in inflation in December failed to give the index any additional boost.

At times, the leading index was only about 30 points away from the milestone, before losing momentum in the afternoon as Wall Street's rally faded. Ultimately, it closed with a modest gain of 0.09 percent at 24,892.20 points.

Even though the DAX has yet to overcome the 25,000-point hurdle, market experts expect it will attempt to do so again this week. "Such round numbers are often a welcome opportunity for profit-taking and an initial phase of consolidation from a psychological perspective," commented Christine Romar, who oversees European business at CMC Markets. However, she added that such a consolidation would be healthy and "more a confirmation of the breakout from the months-long sideways range of the previous second half of the trading year."

The MDAX of mid-cap stocks rose by 0.69 percent to 31,670.42 points on Tuesday. The Eurozone's leading index, the EuroStoxx 50, which continued its record run like the DAX, gained 0.14 percent. Outside the euro area, both Switzerland's SMI and the UK's FTSE 100 reached new all-time highs and ended the day in positive territory.

In the US, moderate gains were recorded by the time European markets closed, with the Dow Jones Industrial managing to extend its record-setting rally. The best-known Wall Street index had already surpassed its December high the day before. Now it inched a few points higher.

The US attack on Venezuela is currently not unsettling global stock markets. Instead, investors are focusing on oil stocks, which could benefit from a potential rebuilding of Venezuela's oil industry. On the other hand, there is also hope for falling oil prices, as this would benefit the global economy, ease inflationary pressures, and could lead to further interest rate cuts.

Semiconductor industry stocks remained highly favored by investors. An upgraded quarterly outlook from US company Microchip Technology was seen as another driver for the sector. Shares of Infineon, for example, rose by 4.8 percent. Aixtron also gained 4.8 percent, with Elmos and Suss advancing as well.

Daimler Truck, Traton, and SAF-Holland were also in demand, buoyed by positive industry signals from the US, and posted strong gains.

Adidas, on the other hand, lost 3.6 percent following a negative comment from Bank of America. The bank stated that there were no signs of a turnaround for the better in the sportswear sector. Adidas was downgraded two notches from "Buy" to "Underperform."

Meanwhile, a more positive view from Bernstein on TKMS helped shares of the naval shipbuilder climb 5.8 percent, putting it at the top of the MDAX./ck/jha/

--- By Claudia Müller, dpa-AFX ---