DAX Record Rally Thanks to Tech Stocks and Despite Inflation Data

In another impressive demonstration of its resilience, the DAX reached a new all-time high on Tuesday, supported by the strong demand for technology stocks. The confident mood among investors saw the index increase by a significant 1.23 percent to 17,965.11 points, closing just shy of the eagerly anticipated threshold of 18,000 points. Market analyst Konstantin Oldenburger of CMC Markets commented that it was only a matter of time before this mark would be exceeded. Despite surprising inflation data from the USA, which caused temporary uncertainty, the market quickly recovered. The MDax also benefited, closing with a gain of 1.43 percent. The US inflation had caused a stir with an unexpected annual increase of 3.2 percent, contrary to the constant rate of 3.1 percent projected by analysts. Although investors are tempering their expectations regarding imminent interest rate cuts by the US Federal Reserve, they remain optimistic that rate cuts could still occur over the course of the year. Chief Economist Thomas Gitzel from VP Bank pointed out that even though core inflation, which excludes energy and food prices, is falling only slowly, downward trends are still observable. In the DAX, shares of Porsche AG stood out, rising an impressive 11.5 percent after the announcement of better-than-expected business figures. According to UBS analyst Patrick Hummel, low market expectations and the positive surprise regarding the operational result contributed to this increase. Shares of Deutsche Bank followed with a gain of 4.7 percent, driven by statements from CEO Christian Sewing regarding further cost savings. Fuchs Petrolub also experienced positive share price development in the MDax, with shares rising six percent unaffected by a less convincing outlook. European stock markets likewise showed positive performance. The EuroStoxx 50 increased by 1.07 percent, while France's Cac 40 recorded a new all-time high, and the FTSE 100 in the United Kingdom also celebrated gains. In the USA, as of the European closing time, the Dow Jones and the technology-heavy Nasdaq 100 recorded moderate increases. Meanwhile, the euro was slightly weakened in light of the persistent high US inflation rate, falling to 1.0917 USD. In the bond market, there was also a slight movement: The yield on circulation increased slightly, while the Rex and the Bund Future had to accept minor declines.