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Stock exchange in Frankfurt: Dax gains – investors expect ECB interest rate cut

Stock exchange in Frankfurt: Dax gains – investors expect ECB interest rate cut

Tailwind from the US stock markets and hopes of a cut in interest rates in the Eurozone have brought gains to the DAX on the first trading day in June. The leading index rose by 0.60 percent to 18,608.16 points on Monday, and during trading it even touched the round mark of 18,700 points. The MDax, which includes medium-sized German stocks, gained 0.92 percent to 26,963.49 points.

From the outset, the European stock markets caught up with a late Friday rally on the New York Stock Exchange. At the start of the week, tech stocks on the Nasdaq benefited from news from semiconductor companies Nvidia and AMD on the hyped topic of artificial intelligence (AI). Even before the weekend, indices such as the S&P 500 had finally shaken off initial concerns about profitability with AI.

On Monday, investors also bet that the European Central Bank (ECB) would cut interest rates during the week. “Not taking this interest rate step would be a bitter disappointment for market players and would fundamentally damage the credibility of the central bank,” wrote the experts at DZ Bank. Fresh economic data did not refute the theory of a first interest rate cut on Thursday: the mood in industrial companies in the eurozone reached its highest level in 14 months in May.

Source: Stern

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