Stock markets: Dax stock market index rises to record high

The Dax has reached a record high. The leading German index rose to 26,671.19 points, exceeding the peak of 26,628.74 points reached in August. The US midterm elections recently brought a lot of momentum to the market.

The surprisingly clear victory for the Democrats fueled hopes that the USA could take a milder foreign policy course. The clear victory in the House of Representatives and Senate also catapulted the US leading index Dow Jones Industrial higher on Wednesday. After their success, the Democrats cannot easily reverse the policies of Republican President Donald Trump - but they can at least significantly disrupt them.

The election result is positive for the markets in several ways, as analyst Jochen Stanzl from Consorsbank explained. "The result was clear quickly, it is clear, Trump accepts it and shared political power brings less risk of political surprises. The stock market loves predictability and is rising."

Positive company reports and falling oil prices provided additional support for the Dax. However, it seems to be a pitch-black day for Rheinmetall investors after the defense company had to lower its forecast again the evening before after the stock market closed. The shares fell far behind in last place in the Dax by almost 17 percent.

In addition to Rheinmetall, Deutsche Telekom, DHL Group, Siemens Healthineers, Commerzbank and, in the afternoon, Hochtief are reporting from the Dax on developments in the past quarter.

The rally on the stock markets is in stark contrast to bad news from the German economy. Particularly in industry, companies are cutting thousands of jobs because trade conflicts and increased competition are causing markets to collapse. However, investors' attention is often not focused on the current situation, but rather on the future profits of the 40 DAX companies.