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Frankfurt Stock Exchange: Dax shows strength ahead of expected interest rate cut

Frankfurt Stock Exchange: Dax shows strength ahead of expected interest rate cut

The record-breaking hunt on Wall Street also drove the German stock market forward on Thursday. However, how much the price gains will ultimately be worth will only be decided in the afternoon. Then the European Central Bank (ECB) will in all probability lower its key interest rates for the first time in almost five years.

The leading index Dax rose by 0.8 percent to 18,725 points in early trading. On Tuesday, the stock market barometer had temporarily fallen to its lowest level in four weeks. The MDax with medium-sized stocks also gained 0.8 percent in the morning to 27,180 points. The EuroStoxx 50, the leading index for the euro zone, rose by 0.7 percent.

The Dax increase is due in no small part to SAP shares, which are the heavyweight in the index and rose by 4.3 percent. At SAP’s annual software event Sapphire, the company announced encouraging growth targets, wrote analyst Nay Soe Naing from Berenberg Bank.

There are changes in the composition of stock indices: shares of Tui, Rational and Traton are moving up to the MDax. All three shares were able to gain ground. Morphosys, SMA Solar and Sixt, on the other hand, have to leave the index. In the leading index Dax, everything remains the same.

Source: Stern

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