After the US Federal Reserve’s clear signal that several interest rate cuts are expected in 2024, the DAX has surpassed the round mark of 17,000 points for the first time in its history. Afterwards the momentum slowed down a bit. Stable key interest rates from the European Central Bank (ECB) in the afternoon initially had little effect.
After the US Federal Reserve’s clear signal that several interest rate cuts are expected in 2024, the DAX has surpassed the round mark of 17,000 points for the first time in its history. Afterwards the momentum slowed down a bit. Stable key interest rates from the European Central Bank (ECB) in the afternoon initially had little effect.
The German leading index recently recorded an increase of 0.55 percent to 16,857.71 points. The profit from its year-end rally since the interim low in October amounts to just over 15 percent. The Dax is a so-called performance index. This means that company dividends are taken into account in the calculation.
Things went even better for the indices behind the Dax. The MDax of medium-sized stocks rose by 2.73 percent to 27,150.30 points. The small cap index SDax gained 3.46 percent to 13,526.80 points. In addition, the Eurozone index EuroStoxx rose by around 0.8 percent.
Real estate stocks responded to the new interest rate prospects with high price gains. Vonovia, for example, climbed almost eight percent in the Dax. Patrizia in the SDax even gained over 15 percent. The European real estate sector, the strongest in the Stoxx 600 industry overview, rose by 5.4 percent. Construction and real estate financing becomes cheaper again when interest rates fall, which can stimulate demand on the housing market.
A report by “Spiegel” resulted in hefty sales of 3.6 and 1.0 percent for DHL on Telekom and DHL shares. According to the magazine, the federal government wants to finance the restructuring of Deutsche Bahn with sales of shares in Telekom and DHL.
The euro initially reacted positively to the ECB’s decision on Thursday, but then came back a bit and was last at 1.0913 US dollars. The ECB set the reference rate significantly lower on Wednesday at $1.0787.
On the bond market, the current yield fell from 2.24 percent the day before to 2.08 percent. In return, the Rex bond index rose by 0.84 percent to 127.89 points. The Bund future recently fell by 0.07 percent to 136.23 points.
Source: Stern
