DAX rises to record high – 17,000 point mark broken

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As of: December 14, 2023 9:52 a.m

The prospect of key interest rates falling soon has pushed the DAX to a record high. The leading index climbed by 1.4 percent to 17,003 points in the morning.

The hope that key interest rates will be cut soon has pushed the DAX above the 17,000 point mark for the first time in its history. The leading German index advanced by up to 1.4 percent to a record high of 17,003 points in early trading. The German stock market barometer has extended its price rally since the interim low in October to 16 percent.

Rate cut hopes drive the prices

The background is yesterday’s interest rate decision by the US Federal Reserve. The Federal Reserve (Fed) left interest rates unchanged, but promised cuts in key interest rates next year. The Dow Jones index then surpassed the 37,000 point hurdle for the first time and reached a record high. Falling interest rates make risky investments such as stocks more attractive.

Investors in the euro area are also already turning their attention to the new year, with the majority expecting sharp interest rate cuts in 2024. The last interest rate meeting of the European Central Bank (ECB) this year takes place today.

Sebastian Schreiber, HR, tagesschau, December 14, 2023 9:25 a.m

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