FRANKFURT (dpa-AFX) - Easing inflation concerns have driven the record rally on the German stock market for the third day in a row at the end of the week. Since Wednesday, the Dax has been approaching the 21,000 point mark in leaps and bounds; the current record from Friday is 20,924 points. Before the weekend, the German leading index closed at 20,903.39 points, up 1.20 percent.
On the second tier of German stock exchanges, the MDax gained 1.27 percent on Friday to 25,834.72 points. At the Eurozone level, the EuroStoxx temporarily reached its highest level in almost 25 years.
Around midweek, US inflation data had caused a turnaround in bond yields, which had risen sharply since December. This had significantly brightened the mood on the stock market. In the US, the core inflation rate excluding energy and food had surprisingly fallen slightly. This somewhat reduced investors' inflation concerns, despite the uncertainty surrounding US tariff policy under Donald Trump, who will take office for a second term on Monday.
"Not a bad record for a market whose economy could soon be targeted by punitive tariffs and other adversities," commented analyst Konstantin Oldenburger of broker CMC Markets on the latest development of the Dax. Nevertheless, "no one knows today how Trump, who calls himself the 'man of tariffs,' will implement his trade strategy." In the end, they should probably serve more as leverage in negotiations.
This is probably why hopes are emerging on the stock market that cooperation with China in particular could be significantly improved. "In combination with the now more likely prospect of interest rate cuts by the Fed, this would of course be positive for the stock market."/mis/stw