Thursday, November 4th, 2021
Record of 16,040.88 points
US monetary policy brings Dax to all-time high
The US Federal Reserve is reducing its securities purchases – good news for stock market traders: after the Dow Jones, the Dax is also breaking all records. Fed chairman Jerome Powell is dampening speculation that an interest rate hike is imminent. Now all eyes are on the Bank of England’s interest rate decision.
The Dax climbed to a record high right after it went public. The latest decisions by the US Federal Reserve and the strong guidelines of the New York Stock Exchanges are fueling. The price rally is on and the reporting season is approaching its peak.
After the first quarter of an hour in Xetra trading, the German benchmark index gained 0.51 percent and rose to 16,040.88 points. The previous record from August is history. The MDax of the medium-sized stock market stocks posted a plus of 0.71 percent to 35,801.22 points, it is still a bit away from its record high. This is not the case with the small cap index, which like the Dax reached a high on Thursday. Meanwhile, the leading Eurozone index EuroStoxx 50 climbed to another high since 2008 and most recently rose by 0.6 percent.
Stockbrokers are relieved that there is now finally clarity about the future monetary policy course of the Fed. As expected, the decision was made on Wednesday evening and gradually reduced the volume of its securities purchases – this process is known as tapering. At the same time, Fed Chairman Jerome Powell dampened speculation that an interest rate hike was imminent. “The tapering begins – the interest rate turnaround remains out for the time being,” summarized the Commerzbank analysts. The Fed wants to take its time with rate hikes. The monetary authorities continue to regard the rise in inflation as a transitional matter.
Today, Thursday, all eyes are on the Bank of England’s interest rate decision. In addition, a number of balance sheets moved the courses. Deutsche Post shares rose 1.7 percent. Thanks to the booming parcel and express business, the group set itself higher goals. Lanxess, however, fell by 5.6 percent after a profit warning. A takeover offer from a Canadian investor for office property landlord Alstria Office sent the shares skyrocketing. They jumped 20.3 percent to a record high of 20 euros.