Hopes of interest rate cuts on both sides of the Atlantic lifted the Dax into positive territory in the middle of the week.

After opening on Wednesday, the leading German index was up around half a percent at 18,516 points. It had lost around one percent on Tuesday. Thomas Altmann, portfolio manager at asset manager QC Partners, pointed to profit-taking.

The number of job vacancies in the USA fell to its lowest level for three years in April. This reinforced investors' expectations that the Fed will cut interest rates in the fall. The monetary authorities are trying to keep inflation in check and cool down the hot labor market with a tight monetary policy. "So the interest rate fantasy is back in the US, while in the eurozone it is probably already a fact that the European Central Bank will herald a turnaround in interest rates tomorrow," summarized strategist Jürgen Molnar from broker RoboMarkets.

Bayer was in the spotlight among the individual stocks. The shares of the pharmaceutical and agricultural group advanced by around two percent, making them the biggest winners in the DAX. A judge in the US state of Pennsylvania had reduced the penalty payment in a glyphosate lawsuit against the company from 2.25 billion dollars to 400 million dollars.

(Report by Zuzanna Szymanska, edited by Ralf Banser. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)