As of September 27, 2024, the DAX index has surged to a new high of 19,238 points, marking a 1.69% increase on September 26, 2024. This remarkable rise is largely attributed to China's announcement of a $142 billion stimulus package, which has positively impacted global markets, particularly in the automotive sector. Notable gains were seen in auto stocks, with BMW rising by 3.81% and Mercedes-Benz by 3.27%. [a46ec0ce]
The recent performance of the DAX follows a period of volatility influenced by the US Federal Reserve's decision to cut interest rates by 50 basis points on September 18, 2024. This move has bolstered market confidence, although the DAX had previously closed at 18,720 points on September 20, 2024, after profit warnings from Mercedes-Benz. [cd841864]
Looking ahead, the European Central Bank's Chief Economist, Philip Lane, is expected to provide insights that may shape future rate cut expectations. Additionally, the US Personal Income and Outlays Report, set to be released on September 27, is anticipated to impact the Federal Reserve's rate path, with economists predicting a rise in Core PCE inflation to 2.7% year-on-year. [a46ec0ce]
Despite a slight increase in unemployment claims, the German unemployment rate is expected to remain stable at 6.0%. Technical indicators for the DAX are showing bullish signals, with analysts suggesting that if current trends continue, the index could potentially reach 19,500 or even 20,000 points. [a46ec0ce]
In the context of these developments, the DAX had previously experienced fluctuations, closing at 18,301.90 points on September 6, 2024, reflecting a decline of 1.48% for that day and 3.20% for the week. This earlier downturn was attributed to expectations of ECB rate cuts amid falling inflation in the Eurozone, which had dropped to 2.2% in August. [e78f14c0][308faced]