Frankfurt, May 9, 2024 (Peniaze24) – The German stock index DAX gained 1% on Thursday and reached a new record high of 18,700 points. The index’s growth was driven by expectations of central bank easing and strong results from Siemens Energy.
Expectations of rate cuts
The main driver of the DAX’s growth was expectations that central banks around the world, such as the Bank of England and the Federal Reserve, will cut their interest rates in response to growing recession fears. The Bank of England left its base rate unchanged at 5.25% on Thursday, but Governor Andrew Bailey suggested that monetary policy could ease soon. The sharp rise in US jobless claims was also a sign of support for US monetary easing.
Siemens Energy leads DAX higher
Siemens Energy, an energy technology company, was at the top of the DAX, with its shares rising 3.3%. The company improved its outlook after a strong previous quarter, which pleased analysts.
Long-term growth
The DAX index first broke above 18,000 points in March and has been on an upward trajectory for several months. Many of the companies in the index have significant overseas operations, particularly in the US, making them less reliant on the domestic German market.
Future outlook
The future development of the DAX index will depend on various factors, such as the global economic outlook, central bank monetary policy and the performance of the companies included in the index. The DAX is expected to remain volatile in the short term, but has the potential to rise in the medium to long term.
