The German stock market benchmark, the DAX, experienced a significant increase on Thursday, closing at 23,674.5 points. This represents a 1.35 percent rise compared to the previous day’s closing value.
A key factor contributing to this positive performance was the interest rate reduction announced by the US Federal Reserve the previous evening, a move that had not been universally anticipated. Market sentiment suggests that further reductions in interest rates are likely at upcoming Fed meetings. In response, US stock markets opened with gains during Thursday afternoon, although the increase was more measured than that observed in Germany.
The newly spun-off entity from Continental, Aumovio, saw the largest gain, rising by approximately ten percent on its debut within the DAX. Conversely, Continental itself recorded a technical decline of over 20 percent, finishing at the bottom of the performance list. However, Continental shareholders are expected to benefit, as they received an additional Aumovio share for every two Continental shares held. Notably, Aumovio is scheduled to be removed from the DAX again on Friday, a standard procedure following spin-offs.
Beyond Aumovio’s substantial movement, shares of SAP and Zalando also performed strongly, gaining over five percent. Commerzbank, Siemens Energy and Sartorius also demonstrated robust growth, with gains exceeding three percent.
The Euro weakened during Thursday afternoon, trading at $1.1777, with the US Dollar fetching €0.8491.
