Update
November rally continues
DAX jumps to all-time high
December 5, 2023, 4:53 p.m
The DAX reached a new all-time high of 16,534 points. The previous high was 16,529 points. A trader speaks of a stabilizing economy – and expects prices to continue to rise.
Driven by the prospect of key interest rates falling again, the DAX broke its four-month-old record. The leading index climbed by 0.78 percent to 16,535 points (as of 5:13 p.m.), surpassing the record from the end of July, which was almost 16,529 points. The year-end rally continues.
In November alone, the DAX gained 9.5 percent in value. Starting from the interim low in October, which at 14,630 points was still close to the annual low in March, it has now increased by 13 percent.
The most important buying argument in recent weeks has been the hope that the central banks in the euro zone and the USA will have finished raising interest rates and will begin cutting them in 2024. Investors are expecting a tailwind for the economy from falling interest rates, after inflation pressure had recently noticeably eased.
ECB leaves interest rates unchanged
Since excessive inflation is harmful to the economy, the central bank had to counteract this by raising key interest rates. The US Federal Reserve Bank, for example, has raised its key interest rate by more than five percentage points since March 2022. The rapid inflation was triggered, among other things, by the rise in energy prices after the Russian attack on Ukraine.
Inflation has now also fallen significantly in the Eurozone. Consumer prices in November were 2.4 percent higher than in the same month last year. A year ago it was 10.1 percent. The ECB had raised its key interest rates sharply since the summer of 2022, but recently left them unchanged.