The German stock market experienced a significant boost on Thursday, with the DAX index closing at 23,674.5 points, a 1.35% increase compared to the previous day’s closing value.
A key factor driving this upward trend was the Federal Reserve’s unexpected interest rate cut announced the previous evening. Market participants widely anticipate further rate reductions at upcoming Fed meetings, contributing to a positive, albeit more measured, opening for US stock markets during Thursday afternoon trading.
Newly listed Aumovio, the Continental spin-off, led the gains, surging by approximately ten percent on its debut within the DAX. Conversely, Continental shares themselves declined by over 20 percent, marking the lowest performance within the index. Continental shareholders are set to benefit as they automatically received one Aumovio share for every two Continental shares held. As per standard procedure following a spin-off, Aumovio is scheduled to be removed from the DAX on Friday.
Beyond Aumovio’s substantial move, shares of SAP and Zalando also performed exceptionally well, both recording increases of over five percent. Commerzbank, Siemens Energy and Sartorius also demonstrated strong performance, with gains exceeding three percent.
The Euro weakened during Thursday afternoon, trading at $1.1777, with the dollar fetching €0.8491.