Falling oil prices: Dax breaks the 27,000 point mark for the first time
Positive company balance sheets, better economic data and a falling oil price are driving the German benchmark index to a record high.
Quick Look
- The Dax broke the 27,000 point mark for the first time in its history this morning.
- The drivers are positive company balance sheets, favorable economic data and falling oil prices.
AI-generated summary
Why It Matters
The German leading index DAX exceeded the 27,000 point mark for the first time this morning.
Good mood on the German stock market: The Dax temporarily reached 27,001.67 points in the morning. Reasons for the optimism in the market include positive company balance sheets and better economic data.
For the first time in its history, the DAX broke the 27,000 point mark. The leading German index gained 1.3 percent to 27,001.67 points. “Investors have obviously caught summit fever again,” said Timo Emden from broker Captrader. Stock marketers attributed the optimism in the market to recently better economic data, positive company balance sheets and a decline in oil prices.
The somewhat cheaper oil will ease the burden on companies, strengthen consumers' purchasing power and at the same time reduce concerns about a renewed surge in inflation, summarized Andreas Lipkow from CMC Markets. Investors are currently betting that there will be an early resolution to the Iran war that has been going on since the end of February. The Brent oil price has fallen by around 21 percent since November.
On the corporate side, index heavyweight Siemens in particular drove purchases on Thursday. The Munich technology group is raising the bar after a record year. The shares climbed 5.2 percent at their peak.
Open Questions
- How long will the record high last?
- How is the Iran conflict developing?
