DAX Rises On Rate Cut Hopes, Adidas' Upbeat Results
(RTTNews) - Despite lingering concerns about potential trade tariffs, German stocks are up firmly in positive territory Wednesday morning, reacting to upbeat earnings updates from Adidas, and U.S. President Donald Trump's announcement of a big investment in AI infrastructure in the United States.
Optimism about an interest rate cut by the European Central Bank next week is also supporting the market. In an interview with Bloomberg TV's Francine Lacqua in Davos, Switzerland today, ECB policymaker Klaas Knot backed the idea of near-term cuts.
Knot said that investor bets for interest-rate cuts in January and March are reasonable, but any commitment beyond is difficult due to heightened global uncertainty.
The benchmark DAX was up 225.55 points or 1.08% at 21,267.07, slightly off a new record high of 21,273.93 touched a little while ago.
Adidas is gaining nearly 6.5% after reporting a 24% jump in revenues to €5,965 million in the fourth quarter of 2024, up from €4,812 million last year. The company's operating profit reached €57 million in the quarter, compared to operating loss of €377 million last year.
Siemens Energy, which fell sharply in the previous session following rating downgrades, is gaining 6.8%. Munich RE is climbing 3.2%, while Hannover Rueck, Rheinmetall, SAP, Siemens, Sartorius, Daimler Truck Holding, BMW, Puma and Siemens Healthineers are up 1 to 2.3%.
Porsche AG shares are down 2.3%. Deutsche Telekom, Commerzbank, Infineon, Deutsche Post, Bayer and RWE are down 0.3 to 1%.
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