The German stock market benchmark, the DAX, continued its upward trend on Thursday, building on a positive start to the trading day. By midday, the index reached approximately 23,645 points, marking a gain of 1.2 percent compared to the previous day’s closing level.
Leading the gains among the DAX constituents were Zalando, SAP and Sartorius, while Continental, Beiersdorf and Volkswagen experienced declines. The reduction in Continental’s share price is attributable to the spin-off of its automotive division, now operating independently on the Frankfurt Stock Exchange under the name Aumovio, a move which will temporarily include Aumovio within the DAX index.
Market analyst Andreas Lipkow attributed the positive performance to investor relief following the recent US interest rate reduction and the Federal Reserve’s subsequent outlook. He noted a renewed focus on technology stocks, with cautious buying also observed in financial and insurance sectors.
“Whether the DAX can now steadily advance towards the 24,000-point level remains to be seen in the coming trading days” Lipkow stated. “Following this policy meeting, another is already on the horizon, with several key macroeconomic data releases scheduled.
The Euro strengthened slightly against the US Dollar, trading at $1.1833, with a US Dollar fetching €0.8451.
Meanwhile, oil prices decreased; a barrel of Brent crude traded at $67.45, a 50-cent decrease, or 0.7 percent lower than the close of the previous trading day.
