DAX Soars as Investors react to Fed’s Bold Rate Cut

Dax Futures

Dax Futures are showing strong gains on Thursday as investors respond positively to the Federal Reserve’s decision to reduce interest rates by 25 basis points, along with indications that two additional cuts may occur by year-end. The benchmark DAX increased by 301.45 points, reflecting a rise of 1.29%, reaching 23,648.40 recently. The Federal Reserve announced on Wednesday its decision to reduce the target range for the federal funds rate by 25 basis points, bringing it to a range of 4% to 4.25%. This move reflects a change in the balance of risks.

The most recent forecasts from Federal Reserve officials indicate an expectation for the central bank to reduce rates two additional times this year, with projections placing rates between 3.5% and 3.75% by the conclusion of 2025. Market participants are currently directing their attention towards the address by European Central Bank President Christine Lagarde, as well as the forthcoming policy announcement from the Bank of England later today.

  • Siemens has risen by 2.2%.
  • SAP is seeing a rise of 4.4%.
  • Sartorius is experiencing an increase of 4.5%.
  • Infineon Technologies is experiencing an increase of 3.5%.
  • Zalando, leading the benchmark index, has increased by 4.7%.
  • Merck, Bayer, Daimler Truck Holding, Heidelberg Materials, Siemens
    Healthineers, and Symrise have experienced an increase ranging from 1% to 1.8%.

Adidas, Commerzbank, Brenntag, and Rheinmetall are experiencing significant upward movement. Continental is experiencing a decline of 20%. Aumovio, an auto parts and components supplier that has spun off from Continental, made its debut on the Frankfurt Stock Exchange today, with shares priced at 35 euros ($41.43) each.

Post-listing, shareholders of Continental will be granted one additional Aumovio share for every two shares they currently possess. Beiersdorf has experienced a decline of 2.1%, whereas Deutsche Bank and Volkswagen have seen decreases of 1.6% and 1.4%, respectively. E.ON, Porsche Automobil Holding, BASF, and RWE are experiencing moderate declines.