On December 4, 2024, the DAX index reached a record high of 20,261 points, buoyed by optimism surrounding potential interest rate cuts from the European Central Bank (ECB) and weak US services data that have driven bullish momentum in the market. This milestone comes despite grim factory order numbers, which showed a decline of 1.5% in October, and a contraction in the German Services PMI, which fell to 49.3 in November. [2481efcc]
The recent surge in the DAX follows a significant increase of 0.4% on December 3, 2024, when the index closed at 20,016.75 points. Analysts attribute this upward trend to a combination of factors, including the US Federal Reserve's decision to cut rates by 50 basis points in September, which has positively impacted investor sentiment globally. [b1f42070]
In the automotive sector, notable gains were observed with BMW and Mercedes-Benz shares rising by 2.28% and 2.00%, respectively. Additionally, Zalando shares surged by 8.21% following an upgrade from Hugo Boss, further reflecting the positive market sentiment. [2481efcc]
However, the DAX's performance is tempered by ongoing uncertainties, particularly regarding potential US tariff threats that could impact the German economy. The German Economic Institute has forecasted a modest growth of 0.1% for 2025, indicating that while the DAX is performing well, broader economic challenges remain. [2481efcc]
Looking ahead, DAX futures indicate a positive session, suggesting that investor confidence may continue to drive the index higher. The upcoming US labor market data and the Federal Reserve's Beige Book report are anticipated to provide further insights into the economic landscape, which could influence the DAX and other global indices. [b1f42070]
Despite earlier fluctuations, including a decline to 18,301.90 points in September, the DAX has shown resilience, with technical indicators suggesting potential for further growth in the near future. [e78f14c0][308faced]