Home » Business » The German DAX index touches a new record high amid hopes of a European rate cut, by Reuters

The German DAX index touches a new record high amid hopes of a European rate cut, by Reuters

© Reuters. An electronic screen displays data for the German DAX index at the Frankfurt Stock Exchange on Wednesday. Photography: Reuters.

(Reuters) – The German index touched a new record high on Wednesday after disappointing data for industrial orders in the region’s largest economy reinforced bets on rapid interest rate cuts from the European Central Bank next year.

The European index rose 0.6 percent, while the DAX closed 0.8 percent higher.

The data showed a surprise decline in German industrial orders in October, falling 3.7 percent on the month, which reinforced expectations of the European Central Bank cutting interest rates next year.

Shares received support from the decline in government bond yields in the euro zone to their lowest levels in several months.

The basic resources sector index gained 1.6 percent, tracking the rise in most basic metal prices, while travel and entertainment sector shares rose 2.3 percent.

Among individual stocks, German Volkswagen (ETR:) rose 5.4 percent.

(Prepared by Ali Khafaji for the Arabic Bulletin)

2023-12-06 18:28:00
#German #DAX #index #touches #record #high #hopes #European #rate #cut #Reuters

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.