The minutes of the most recent US central bank meeting give the Dax a further boost on Thursday from an already high level. In addition, the Ifo business climate, the most important German economic barometer, brightened more than experts had expected. The leading German index reached another high since the beginning of June in the first hour of trading and most recently gained 0.77 percent to 14,539.04 points. It has now gained almost 23 percent since its low for the year at the end of September.
The MDax of medium-sized stocks rose by 1.32 percent to 25,973.18 points on the penultimate trading day of the week. The EuroStoxx 50, the leading barometer for the euro zone, was 0.5 percent higher.
The minutes of the US Federal Reserve’s November meeting keep the chance of the year-end rally in the stock market alive. The Fed announced a more cautious pace of interest rate hikes. This is well received on both the stock and bond markets, said market expert Thomas Altmann from asset manager QC Partners. The minutes have fulfilled the high expectations of the brokers.
At the meeting in early November, the Fed raised its key interest rate sharply by 0.75 percentage points for the fourth time in a row. US Federal Reserve Chairman Jerome Powell and other Fed officials had recently announced a more cautious approach. After all, the Fed has already raised key interest rates from almost zero to currently 3.75 to 4.0 percent in the current year. In addition, inflation has weakened somewhat recently. Market observers are now expecting the US key interest rate to rise by just 0.50 percentage points in December.
Relief was palpable on the New York stock market after the minutes were published. The leading index Dow Jones Industrial and the market-wide S
In addition, trading on the stock market in the USA will only be shortened on Friday tomorrow. Trade tends to take place in the shops, so-called “Black Friday” marks the start of the Christmas business. Some market participants also use these days for a long weekend. The expectations of the important US retail trade are high, explained analyst Christian Henke from Broker IG. At the same time, he warned that a disappointing “Black Friday” and renewed lockdowns in China could severely slow down the recovery on the stock markets.
Corporate news is rather scarce on Thursday. After the announcement of medium-term goals, the papers of the special pharmaceutical company Medios continued their recovery rally in the SDax of the smaller stocks, with a plus of 1.5 percent. At Uniper, the high price fluctuations continued, and the shares of the struggling utility fell by around ten percent.
Real estate values recovered. The signs of a slower pace of interest rate hikes in the US have investors in Europe hoping for a similar development in the near future. Vonovia gained more than four percent at the top of the Dax. TAG and LEG led the MDax, each with premiums of around four and a half percent. LEG also benefited from an upgrade to “overweight” by the US bank Morgan Stanley.
