The Dax continues its unstoppable ascent, closing 0.75% higher on Wednesday at an impressive 16,656.44 points. Nudging past its previous high of 16,727.07 points, the German index showed no signs of slowing down. Since bottoming out in October, the Dax has raked in a staggering 14% in gains.
While the labor market in the US slows down, hinting at lower interest rates, this didn't hinder the Dax's momentum. Even when Merck KGaA and Fresenius faced setbacks, the Dax forged ahead. Merck's shares took a 13.1% hit due to unsatisfactory trial results for Multiple Sclerosis treatment, causing HSBC to downgrade the shares and withdraw sales estimates for Evobrutinib. Fresenius, too, faced challenges, with energy subsidies inhibiting dividend distribution and a cyberattack impacting shares.
Despite these hurdles, Volkswagen and Bayer enjoyed a significant jump. Volkswagen surged thanks to positive news regarding the Xinjiang plant, while Bayer rode out an unfavorable American court verdict with an impressive 2.2% rise. Hensoldt shares saw a drop, but the momentum propelled Tui shares skyward by 15.3%, sparking speculation of a return to the MDax.
The EuroStoxx 50 also soared to its highest level since 2007, closing 0.68% higher at 4483.26 points. The Cac 40 and FTSE 100 saw substantial gains, while the Dow Jones Industrial inched ahead after a two-day rally.
The euro remained stable, and the ECB maintained interest rates. Bond yields slipped to 2.28%, and the Rex bond index rose by 0.15%.
Interest rates decreased, and investors remained vigilant as they monitored bond yields. The Rex bond index increased by 0.15%, and the Bund future rose by 0.38%.
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Background
Recent events in the US labor market and individual company performances have played a role in the Dax's performance. A slowdown in job growth in the US could have potential impacts on European markets like the DAX. The DAX is also under bullish pressure, with its index breaking through key resistance levels. Global economic conditions, including the performance of major indices like the Hang Seng Index, influence the DAX as well. However, the overall trend of the DAX is driven by technical analysis and intermarket dynamics.
