Inflation eases: Dax reaches new all-time high on Frankfurt Stock Exchange
The main reason for this development is that inflation figures in the eurozone have recently fallen. Investors are therefore speculating that the European Central Bank (ECB) has ended its policy of interest rate hikes for the time being and that key interest rates could even fall again in the near future. This in turn boosts the economy.
The ECB had raised interest rates in the eurozone ten times in a row since July 2022 in the fight against high inflation. At its meeting in October, it left interest rates unchanged. Inflation in the eurozone fell significantly to 2.4 percent in November.
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- Due to the decrease in eurozone inflation, the DAX reached a new all-time high on the Frankfurt Stock Exchange, indicating a positive sentiment among investors.
- With inflation easing, investors speculate that the ECB has achieved relaxation in its monetary policy, potentially leading to lower interest rates in the future.
- The Frankfurt Stock Exchange has witnessed a surge in activity, with the DAX reaching new heights on news of inflation figures falling below previous highs.
- The ten consecutive interest rate hikes by the ECB to combat inflation in the Eurozone since July 2022 seem to have had their desired effect, as inflation fell to 2.4% in November.
- The recent all-time high of the DAX on the Frankfurt Stock Exchange could be indicative of the ECB's successful endeavor to control inflation within the Eurozone.
- The positive trend in the Frankfurt Stock Exchange, capped by the new highest level of the DAX, is strongly connected to the ECB's announced relaxation in its fight against inflation.
- Despite the recent improvement in eurozone inflation, market participants are closely monitoring the ECB's future moves, as key interest rates in the Eurozone could potentially experience new lows in the near future.
Source: www.stern.de
