Profitable streak for DAX, with Zalando stocks surging notably
DAX and Euro Stoxx 50 Continue Positive Streak Amid Rate Cut Expectations
The German benchmark index DAX is on a roll, with a 0.5 percent increase today, pushing it closer to its tenth consecutive gain. The DAX currently stands at 18,407 points, a recovery attempt from a decline that pushed the index close to 17,000 points.
The DAX's nine consecutive positive trading days represent the longest winning streak in a decade. The European counterpart, the Euro Stoxx 50, is also performing well, up by 0.6 percent and standing at 4,870 points.
Zalando's stock continues to lead the DAX in terms of performance, up by over 3.4 percent. The ticker symbol for Zalando's stock is WKN: ZAL111, while the DAX's own ticker is WKN: 846900.
Investors expect the US Federal Reserve to announce a 0.25 percentage points interest rate cut this weekend, easing monetary policy for the first time since December 2024. This rate cut, which is largely priced into the markets, will focus attention on Fed Chair Jerome Powell's comments regarding the pace and scope of future rate cuts.
Analysts at DZ Bank expect Powell to pave the way for a rate cut in September. Some analysts still consider a rate cut of 0.5 percentage points possible, while others consider it a possibility for the Euro Stoxx 50 and the DAX.
Defense companies' stocks were initially in focus, suffering significant losses that later decreased. Rheinmetall's shares fell by 1.4 percent after rising up to 28 percent within two weeks and approaching their record high. The annual central bank meeting in Wyoming is causing investors to remain cautious due to uncertainty surrounding the potential implications for US monetary policy.
Recession fears have eased following positive economic data from the US. However, the annual central bank meeting in Wyoming has added a note of caution, making investors tread carefully. Despite this, the markets continue to show resilience, with both the DAX and the Euro Stoxx 50 performing well.
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