FRANKFURT (dpa-AFX) - On Wednesday, the Dax was boosted by positive U.S. consumer price data and sent to a record high. Buoyed by these data and a strong start to the reporting season by U.S. banks, the German leading index rose above 20,600 points for the first time. It closed up 1.50 percent at 20,574.68.
"The shock following Friday's strong US labor market report was followed by the dress rehearsal with producer prices yesterday and then the final breakthrough today," said market analyst Konstantin Oldenburger of CMC Markets, summarizing the trading day. He particularly emphasized the surprising decline in core inflation in the US. This caused a decline in the yield of ten-year US government bonds on the US bond market, which has now "moved away from the critical five percent mark".
In the United States, inflation had intensified at the end of last year as expected. However, the core rate, which excludes energy and food and is particularly important for the monetary policy of the US Federal Reserve, fell unexpectedly. This has reduced investors' concerns that the Fed may have to halt its interest-rate cuts this year or even raise key rates.
On the second German stock exchange, the MDax rose by 1.58 percent to 25,564.59 points on Wednesday. The leading index of the euro region, the EuroStoxx 50, gained 1.04 percent to 5,032.31 points, reaching its highest level since mid-October. The Swiss and British stock markets also rose. The US stock markets also rose sharply by the time the European markets closed./ck/jha/