DAX cracks the 17,000 point mark
As the year draws to a close, the German benchmark index is on the rise: in the morning, the DAX exceeded the 17,000-point threshold for the first time following signals of falling interest rates from the FED.
In anticipation of falling interest rates in the near future, the DAX surpassed the psychologically important 17,000-point mark at the start of trading. The leading German index climbed 1.4 percent to a record high of 17,003 points at the opening of trading. The US Federal Reserve had recently signaled interest rate cuts for 2024.
The Fed's statements "are forcing underweighted market participants to buy ahead of the expiry", said one market participant. "However, a lot of potential for the coming year is now also being eaten away," he says, also with a view to the sharp fall in yields.
In addition, the DAX started the day with a large gap, which could make a further run-up more difficult. Among others, real estate stocks and utilities are in demand, while insurance companies are taking profits.
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The Federal Reserve's signaled interest rate turnaround for 2024 prompted investors to anticipate falling interest rates, leading to the DAX surpassing the 17,000-point mark. The interest rate decisions made by the Fed could significantly impact the performance of various stock indices, including the DAX, moving forward.
Source: www.ntv.de
