The US labor market data has generated renewed interest in the possibility of interest rate cuts, leading to a continued rally in the DAX 40.

In November, 227,000 new jobs were created, surpassing the expected 200,000. However, the unemployment rate rose from 4.1% to 4.2%, indicating mixed signals for the economy. Wage growth has also increased, causing concerns for the Federal Reserve.

The CME Group's "Fed Watch Tool" now shows an 85.1% probability of a 25 basis point rate cut on December 18, a significant increase from the previous day's 71% likelihood.

The ongoing government crisis in France, following a vote of no confidence, has captured the attention of investors. The current government has been ousted, but President Emmanuel Macron intends to remain in office, adding further uncertainty to the market.