FRANKFURT (dpa-AFX) — The DAX continued its recovery rally on Thursday, buoyed by positive momentum from New York. Early losses turned into gains as investors on Wall Street responded optimistically to the third interest rate cut this year by the US Federal Reserve. This move sent the US benchmark Dow Jones Industrial Average to a record high. Losses in the US technology sector had little impact on German markets.

The DAX closed up 0.68 percent at 24,294.61 points, reaching its highest level in over a month after approaching the psychologically important 24,000-point mark in early trading. The MDAX, which tracks mid-sized German companies, also finished 0.63 percent higher at 29,920.08 points.

The US Federal Reserve had lowered its benchmark interest rate by 0.25 percentage points on Wednesday evening, as expected, despite inflation remaining above its target. According to DZ Bank, Fed Chair Jerome Powell justified the move by citing risks of misjudging the labor market. Markets were also encouraged by the Fed's willingness to purchase short-term government bonds to counteract tensions in the money market.

SAP shares were affected by disappointing growth figures from US competitor Oracle in the artificial intelligence sector, which weighed on the New York Nasdaq exchange. However, shares of the Walldorf-based software giant managed to limit their losses to 0.8 percent, while Oracle shares came under significant pressure in New York.

Among the DAX gainers, Munich Re stood out with a 2.2 percent rise. The reinsurer's shares benefited from further strategic announcements, with some medium-term details already viewed positively the previous day. On Thursday, the company announced that profits in the coming years would also be driven by stronger cost savings.

The auto sector was supported by ongoing hopes for less stringent regulations on phasing out combustion engines. Statements from EVP parliamentary group leader Manfred Weber bolstered these expectations during the day. However, the three major carmakers in the DAX had already benefited significantly from this optimism recently, so their movements remained moderate.

Shares of commercial vehicle manufacturers Daimler Truck and Traton saw stronger gains, as they were seen as having room to catch up. DAX leader Daimler Truck, whose stock rose by nearly five percent, also received a buy recommendation from US research firm Morningstar.

Eon, on the other hand, ended at the bottom of the DAX with a 3.5 percent loss due to new rules from the Federal Network Agency. Jefferies analyst Ahmed Farman noted some positives for financing costs of existing electricity grid assets, but said the lack of major improvements compared to the June draft regulations was disappointing.

Symrise shares temporarily fell to a new low since early 2019, dragged down by a competitor. Swiss company Givaudan gave analysts their final hints before its earnings release at the end of January, which proved disappointing. However, the pressure on Symrise eased somewhat, with losses shrinking to half a percent.

Medical technology group Carl Zeiss Meditec presented an annual report with mixed results. Early gains in the stock were partly attributed to short covering by speculators, but shares ultimately reversed to end down 6.6 percent. Barclays Bank expert Jonathon Unwin pointed to uncertainty related to headwinds in the China business and the global currency and tariff environment.

The recent recovery rally of Delivery Hero was halted by a sell recommendation from Citigroup. Shares of the food delivery company lost 5.3 percent, giving back some of the previous day's gains, which had been driven by hints of a possible review of strategic options.

The Eurozone benchmark EuroStoxx 50 ultimately rose by 0.80 percent to 5,753.96 points. Outside the Eurozone, the Swiss SMI posted a slight loss, while London's FTSE gained half a percent. In New York, the Dow Jones Industrial recently gained just over one percent./tih/jha/