The DAX began the trading day on Thursday with gains. Around 9:30 AM, the leading index was calculated at approximately 25,720 points, marking a 0.7 percent increase over the previous day’s closing level. Siemens Energy, Hochtief, and Rheinmetall led the gains, while Symrise, Infineon, and Brenntag finished the list.
Meanwhile, global financial focus shifted to the Bank of England, following yesterday’s events involving the Fed, noted Thomas Altmann of QC Partners. While the British central bank is likely to maintain its key interest rate, Altmann emphasized that the outlook on monetary policy is more crucial than the decision itself. He stated that markets anticipate the Bank of England will begin shifting toward a tighter stance. According to current market sentiment, rate hikes could start in November or December, potentially raising the key interest rate from its current 3.75 percent to as high as 4.5 percent by the end of next year.
The analyst added that investors are still searching for clear direction regarding the DAX, and the future course looks completely open. He explained that the German leading index is currently driven by monetary and geopolitical developments and cannot establish its own momentum within this environment.
In other markets, the common European currency was slightly stronger on Thursday morning: the Euro was trading at 1.1477 US dollars, meaning the dollar cost 0.8713 Euros. The price of oil, however, declined. Around 9 AM German time, a barrel of North Sea Brent crude was trading at $103.90; this represented a drop of 198 cents, or 1.9 percent, compared to the close of the previous trading day.
