Stock exchange in Frankfurt - Dax rises again after ECB disappointment
The Dax posted gains again at the "big expiry date" on Friday. Following the previous day's setback from its record high, the leading German index bucked the latest disappointment from the European Central Bank (ECB). At the end of the day, the stock market barometer was up 0.58 percent at 16,850.05 points. The DAX thus returned to the all-time record of 17,003 points set the day before.
Fueled by signals from the US Federal Reserve to cut interest rates, the German benchmark index had jumped above the 17,000-point mark for the first time in its history in the first few minutes of trading the previous day. Shortly afterwards, the record chase ran out of steam because, unlike their US counterparts, the ECB's monetary watchdogs dampened hopes of lower interest rates in the near future.
The MDax mid-cap index rose by 0.48% to 27,327.53 points on Friday. The leading eurozone index EuroStoxx 50 rose by around 0.7 percent.
On the corporate side, Symrise spooked investors. The manufacturer of fragrances and flavors is suffering from its customers' destocking and is feeling the effects of lower raw material prices. The shares brought up the rear in the Dax, falling by 8.8 percent. The share price of reinsurer Munich Re recently rose by a good one percent following the presentation of business targets for 2024. Zalando shares led the way in the DAX with a 4.3 percent gain.
Car stocks were also at the top of the share price table. BMW and Mercedes-Benz each gained more than two percent, with Daimler Truck and Volkswagen following just behind. The gains are in line with the latest trend in the sector, which has been on the road to recovery since the end of October.
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- The upcoming Frankfurt Stock Exchange listing of German fintech company N26 is expected to contribute to the record-breaking performance of the MDAX, which is closely linked to the Frankfurt Exchange.
- Despite the US Central Bank's potential interest rate cuts, the German Stock Exchange in Frankfurt, including the DAX and MDAX, might continue to be influenced by the ECB's monetary policy, as shown by recent market movements.
- Frankfurt, as a financial hub, hosts the Frankfurt Stock Exchange and serves as a key gateway for foreign investors looking to access the German economy and its leading indices such as the DAX and MDAX.
- The European Central Bank (ECB) and Deutsche Bundesbank, situated in Frankfurt, play a significant role in monitoring and managing interest rates in Germany and the Eurozone, indirectly impacting the performance of the German Stock Exchange and the DAX.
- The German benchmark index, DAX, reaching a record high on the Frankfurt Stock Exchange, has attracted international attention, making it an attractive investment option for US Central Bank investors looking for safe and high-performing markets.
Source: www.stern.de
