DAX closes below 25,000 points due to sharp rise in German consumer prices
Quick Look
- The Dax fell just below the 25,000 point mark on Thursday to 24,939 points due to the surprisingly strong increase in German consumer prices of 3.3 percent year-on-year.
- On Wall Street, the indices showed inconsistent development, while the Nikkei index in Japan temporarily rose by three percent thanks to strong chip values.
- The French government presented its draft budget for 2027 with tough austerity measures to reduce the deficit and reassure bond investors ahead of the presidential election.
AI-generated summary
Why It Matters
The Dax was able to stay above the 25,000 point mark for most of Thursday after closing at 25,199 points on Wednesday. The 3.3 percent increase in German consumer prices in September compared to the previous year was published as the first estimate on Wednesday.
Dusseldorf. The Dax closed around one percent in the red on Thursday, just below the 25,000 point mark, at 24,939 points. He had been able to stay above the mark for most of the day. On Wednesday, the leading German index closed 0.8 percent lower at 25,199 points.
The surprisingly strong rise in German consumer prices caused prices to fall on the stock exchanges in Europe. In September, goods and services cost 3.3 percent more than a year ago, according to an initial estimate published on Wednesday.
On Wall Street, the most important indices closed mixed. In Japan, the Nikkei index temporarily rose by three percent on Thursday thanks to a rally in chip stocks. Robust business results from chipmaker Micron fueled optimism about AI-related investments.
The French government presented its draft budget for 2027 on Thursday. She wants to use tough austerity measures to reduce the high budget deficit and regain the confidence of the financial markets. The budget also includes unpopular measures to calm bond investors' nervousness ahead of next year's presidential election.
What to Watch
AI outlook — possibilities, not facts
The European Central Bank will review its interest rate policy at the next meeting due to high inflation in Germany
Likely · Within weeks
France's draft budget for 2027 will be debated in parliament and possibly modified before adoption
Very likely · Within months
Open Questions
- How will the European Central Bank react to the surprisingly strong rise in German inflation?
- What specific measures does the French draft budget for 2027 contain exactly?
- How sustainable is the optimism in chip stocks given the general market weakness?
