DAX reaches new peaks – US Federal Reserve gives positive signals

The German stock market showed its best side on Thursday – bolstered by the positive signals emanating from the U.S. Federal Reserve. The DAX exceeded all expectations and leaped by 0.91 percent, rising to a historical high of 18,179.25 points. This momentum was also felt at the stock exchanges in New York, where the record chase continued. Meanwhile, the MDAX, the index of medium-sized companies, also recorded gains, rising by 0.79 percent to 26,473.05 points. However, it still lags behind its own record high from 2021, which sits about 10,000 points above the current mark. The Federal Reserve's restraint in raising interest rates combined with the prospect of potential cuts later this year thrilled investors. Additionally, the Fed predicted stronger economic growth for the current year, which met with high approval from market commentators at Index Radar. They characterized it as an 'ideal scenario'. At the corporate level, various conglomerates revealed their annual results, which largely confirmed earlier announcements. The IPO of the perfume chain Douglas caused a stir, however, it fell short of expectations. With a closing price of just over 23 euros, the shares were significantly below the issue price of 26 euros. This was facilitated by negative news from the luxury goods group Kering the day before the stock market debut, which weighed on the entire segment. In contrast, the stock of the building materials manufacturer Heidelberg Materials hit a record high since 2008 after a dividend increase and closed up 4.6 percent. Analysts also see further potential. Rheinmetall benefited from a multi-billion euro Bundeswehr order and a target adjustment by JPMorgan, leading to a three percent increase. The wind energy sector also received a boost: Nordex's stock price soared by 4.9 percent following an order from RWE. While RWE itself experienced a slight write-down, Goldman Sachs interprets this as confirmation of their positive views on the European wind sector. Siemens Energy even recorded a 6.7 percent increase, propelled by reports of intentions to sell its onshore wind power division. However, the telecommunications providers United Internet and its subsidiaries 1&1 and Ionos presented weaker figures on the trading floor after unveiling their quarterly results, with share prices dropping by up to four percent. The EuroStoxx 50 also gained, adding just over one percent, with the French CAC 40 making moderate gains and the British FTSE 100 climbing significantly, supported by the Bank of England's unchanged interest rate policy. Meanwhile, the Dow Jones Industrial in New York saw an increase of 0.8 percent, and the Nasdaq 100 rose by 1.2 percent. The euro, in the meantime, fell below 1.09 U.S. dollars, resulting in a last recorded rate of 1.0860 dollars. The yield on government debt fell slightly, while the bond index Rex and the Bund Futures noted marginal gains, suggesting a slight easing in the bond market.