The rally on the US stock exchanges driven by technology stocks pushed the Dax to another record high on Tuesday. The leading German index reached its peak at 17,973.22 points and closed 1.23 percent higher at 17,965.11 points. “Reaching 18,000 points should now only be a mere formality,” wrote market analyst Konstantin Oldenburger from the trading company CMC Markets.
The rally on the US stock exchanges driven by technology stocks pushed the Dax to another record high on Tuesday. The leading German index reached its peak at 17,973.22 points and closed 1.23 percent higher at 17,965.11 points. “Reaching 18,000 points should now only be a mere formality,” wrote market analyst Konstantin Oldenburger from the trading company CMC Markets.
Disappointing inflation data from the USA only briefly unsettled investors on both sides of the Atlantic. The index of medium-sized companies, the MDax, gained 1.43 percent to 26,408.29 points.
Price inflation in the USA has accelerated unexpectedly. Consumer prices rose by 3.2 percent in February compared to the same month last year. Analysts on average had expected an unchanged rate of 3.1 percent.
The expectations of the hoped-for imminent key interest rate cuts by the US Federal Reserve were dampened. However, investors continue to believe that the Fed can actually cut interest rates this year – even if it maintains its cautious stance for now.
At the top of the DAX, Porsche AG shares shot up by 11.5 percent after the presentation of business figures. Thanks to the low market expectations, the sports car manufacturer’s operating result was better than forecast, wrote analyst Patrick Hummel from the bank UBS. Cautious profitability targets, however, weighed less heavily, as 2024 is viewed as a transition year given the many model changes.
Deutsche Bank shares secured second place in the leading index with an increase of 4.7 percent. It wants to further reduce its costs in addition to the recent job cuts, as CEO Christian Sewing said at an investor conference at the US bank Morgan Stanley.
The Eurozone leading index EuroStoxx 50 rose by 1.07 percent to 4983.20 points. In Paris, the Cac 40 reached another record high and closed 0.8 percent higher. The British leading index FTSE 100 ended trading a good one percent higher. In the USA, the Dow Jones Industrial rose by 0.2 percent at the European market close, and the technology-heavy Nasdaq 100 recently rose by almost one percent.
The euro suffered somewhat from the surprisingly stubborn inflation in the USA and was last trading at 1.0917 US dollars. The European Central Bank had set the reference rate at 1.0916 (Monday: 1.0926) dollars. The dollar therefore cost 0.9160 (0.9152) euros.
On the bond market, the current yield rose to 2.34 percent from 2.31 percent the day before. The Rex bond index fell by 0.16 percent to 125.55 points. The Bund future fell by 0.15 percent to 133.11 points.
Source: Stern
