The Dax index closed on Thursday with a gain of 0.41 percent, reaching a new high of 21,732.05 points, before settling at 21,727.20 points at the close of trading.
Market analyst Konstantin Oldenburger from CMC Markets attributed the positive performance to the European Central Bank’s (ECB) decision to cut interest rates, which was widely expected and already priced into the market. “The Dax has taken the ECB’s rate cut in its stride and its reaction was no surprise” Oldenburger said.
The German benchmark index is now closer to the 22,000-point mark, which could be reached in the coming days, according to the expert. In contrast, the Federal Reserve in the United States is expected to keep interest rates steady, with the ECB potentially cutting rates by another percentage point in the coming months, Oldenburger added.
In the stock market, Siemens Energy led the gains, with a rise of over 4 percent, followed by Vonovia and Brenntag. In contrast, Infineon and Deutsche Bank fell by over 3 percent.
The euro was slightly stronger against the US dollar, trading at 1.0427 per dollar, while the US dollar was worth 0.9590 euros. Gold prices also rose, with a ounce of fine gold selling for $2,794, a 1.2 percent increase, or 86.14 euros per gram.
Crude oil prices, meanwhile, increased, with a barrel of Brent crude selling for $77.21, a 0.8 percent gain from the previous day’s close.