The DAX, Germany's primary stock index, reached a new record high of 19,675 points following the European Central Bank's interest rate decision. This surge came after a period of consolidation earlier in the week.
The DAX opened at 19,510 on Thursday and initially dipped to a low of 19,499 before gaining momentum. The pivotal moment came with the ECB's announcement, which provided the necessary impetus for the index to break through its previous all-time high. The DAX closed at 19,583, reflecting a 0.8% increase and signaling a strong rebound from the prior day's weaker performance.
Analysts are now closely monitoring the index for potential further gains, with the immediate target set at Tuesday's high of 19,634. The focus will shift to the new all-time high of 19,675, and beyond that, the psychological barrier of 20,000 points could be within reach. The current market dynamics suggest a robust outlook for the DAX, particularly in light of the ECB's interest rate cut. If the index continues to gain momentum, it could pave the way for a sustained rally, with minimal resistance anticipated above the 19,675 mark. However, there are risks involved, and critical support levels will come into play if the DAX experiences a downturn.
The composition of the DAX comprises 30 of the largest and most liquid companies listed on the Frankfurt Stock Exchange. The index is calculated as a performance index, reflecting price changes, dividends, and other distributions. The weighting of each company in the index is determined by its market capitalization.
As the DAX continues to evolve, its performance remains a critical indicator for investors and analysts, providing insights into the economic landscape of Germany and the Eurozone.