The Dax is on course for a record. The leading German index reached another record at 17,089 points in early trading. It left trading at 17,046.69 points, 0.6 percent higher than the day before. The MDax of medium-sized stocks did not keep up: it closed with a gain of 0.03 percent to 26,057.19 points.
The Dax is on course for a record. The leading German index reached another record at 17,089 points in early trading. It left trading at 17,046.69 points, 0.6 percent higher than the day before. The MDax of medium-sized stocks did not keep up: it closed with a gain of 0.03 percent to 26,057.19 points.
Concerns about the recent unexpectedly high inflation in the USA were quickly shaken off. Analyst Konstantin Oldenburger from the broker CMC Markets emphasized, with a view to the record high in the DAX and a simultaneously weak economy in Germany, that it is not the domestic business that makes the companies on the stock exchange more and more valuable. They generated most of their sales and profits abroad. “In addition, the interest rate peak has been reached, even if inflation in the USA may not come back quite as quickly as initially expected.”
For investors, the timing of an interest rate cut no longer seems to be so important – the main thing is that the interest rate turnaround comes. Even if the major central banks Fed and ECB have not yet flipped the switch, the change in monetary policy is already being verbally prepared, wrote Gertrud Traud, chief economist at Helaba, in an assessment of the economy and the financial markets. She expects the two central banks to switch over in June. If interest rates fall, stocks would become more attractive again compared to bonds. In addition, lower interest rates would make refinancing companies cheaper.
Source: Stern
