DAX rises to greater than 25,000 factors for the primary time | EUROtoday

The DAX has exceeded the 25,000 level mark for the primary time in its historical past. The main German inventory market index rose to 25,003.73 factors within the first minutes of buying and selling on Wednesday. However, as buying and selling continued, the index fell beneath the mark once more and was buying and selling at slightly below 25,000 factors.

Because of the federal authorities’s billions in infrastructure and armaments, the prospect of a revival of the German economic system within the new yr is a key value driver. The seasonality additionally speaks in favor of the Dax, as January is often one of many stronger months on the inventory market. Unresolved conflicts additionally contributed to the index information: As the conflict in Ukraine continues, protection shares had been in demand on this nation.

The US assault on Venezuela and the seize of Venezuelan head of state Nicolás Maduro by US elite troops didn’t trigger uncertainty, however reasonably hope for falling oil costs, which has already come true to some extent. Cheaper oil is nice for the worldwide economic system, might scale back inflationary stress and imply additional rate of interest cuts by central banks.

Market analyst Jochen Stanzl from Consorsbank names three causes for the DAX improve: firstly, the reduction that there was no navy battle as a result of US assault on Venezuela, secondly, the prospect of falling oil costs within the medium time period and thirdly, a brand new urge for food amongst buyers for shares outdoors the USA. The “New Year’s rally” within the Dax is in full swing.

Overall, the inventory market temper is at the moment extraordinarily constructive. In Europe, the Eurozone main barometer EuroStoxx 50 is progressively heading in the direction of the 6,000 level mark. But tailwind can be coming from Wall Street, the place the main index Dow Jones Industrial is now heading in the direction of the 50,000 level mark.

Hopes for an financial restoration in Germany had already pushed the Dax to a file excessive on Monday; Record highs on the US inventory exchanges additionally contributed to this.

As early as the top of 2025, buyers on the German inventory market had been more and more betting on a revival of the German economic system by way of the federal authorities’s debt-financed infrastructure and armaments billions and thru much less forms.

The rally on the inventory markets is in stark distinction to the present robust financial downturn in Germany. Investors typically focus not on the present state of affairs, however on future income. In addition, the 40 corporations listed within the DAX are internationally positioned and generate the vast majority of their gross sales overseas.