The Dax closed 0.41 percent higher at 17,885.60. The leading index thus ended the seventh trading day with a profit. MDax of average companies increased by 0.85 percent and made 24528.29 points.
The most important European exchanges were also in good condition. The Eurozone’s leading EuroStoxx 50 index closed 0.7 percent higher at 4,727.60 points. In stock exchanges of the country in London and Zurich, key indicators also posted steady gains. In the US, the Dow Jones Industrial gained 0.4 percent at the close of trading in Europe.
The US Federal Reserve is moving towards easing its monetary policy
US consumer prices rose 2.9 percent year-over-year in July, up from 3.0 percent in the previous month. Experts expected an average increase of 3.0 percent. Core inflation, excluding energy and food, also decreased slightly. Therefore, the US Federal Reserve Bank is moving in the direction of easing its monetary policy. In addition to lower inflation, weaker labor market and economic data are also contributing.
“The door is open for a Fed key rate cut at the September meeting,” Landesbank Baden-Württemberg economist Dirk Chlench commented. “If the next labor market report doesn’t spit out our soup, a 0.50 percentage point cut in the prime rate is quite likely, with monthly price increases driven by housing costs alone.”
Utility shares Eon and RWE in losses
Quarterly balances again caused some strong price swings in the middle of the week. On the Dax, two utility stocks Eon and RWE fell 2.9 percent and 5.7 percent respectively. At RWE, among other things, stockbrokers complained that the power producer did not raise its annual targets after a good second quarter.
In second row, quarterly figures for insurer Talanx and travel group Tui’s MDax lifted prices by 6.5 percent and 1.1 percent respectively. On the other hand, K+S stagnated after the fertilizer maker went public.
PVA Tepla rose 12.5 percent on the small-cap SDax. The technology company was significantly more profitable in the first half than a year ago. However, shares of electronics retailer Ceconomy came under pressure after the quarterly balance sheet, losing 6.3 percent.
Thyssenkrupp Nucera plus after takeover offer
Quarterly reports from container shipping company Hapag-Lloyd and Deutsche Pfandbriefbank were also not well received, with prices falling 4.4 percent and 4.8 percent, respectively.
Shares in Thyssenkrupp Nucera benefited from Deutsche Bank’s reaffirmed buy recommendation, gaining 6.4 percent. A new offer by UBS Bank to buy United Internet raised prices by 6.4 percent.
In the foreign exchange market, the euro rose to its highest level since December, after US consumer prices. It was last quoted at $1.1028. It european The central bank set the common currency at 1.1019 dollars at noon.
German bond prices have risen again. The Rex bond index increased by 0.11 percent, reaching 126.58 points. The current yield fell to 2.20 percent from Tuesday’s 2.22 percent. Bund futures were recently up 0.05 percent at 135.03.