DAX Rises Sharply As Investors Cheer Fed Rate Cut Move
(RTTNews) - German stocks are up firmly in positive territory on Thursday with investors cheering the Federal Reserve's decision to lower interest rate by 25 basis points, and the hint that two more cuts are likely by the end of the year.
The Fed said on Wednesday that it decided to lower the target range for the federal funds rate by 25 basis points to 4% to 4.25%, citing a shift in the balance of risks.
The latest projections from Fed officials also suggest they expect the central bank to lower rates two more times this year, with rates forecast in a range of 3.5% to 3.75% by the end of 2025.
Investors are now focusing on European Central Bank President Christine Lagarde's speech, and the Bank of England's policy announcement later in the day.
The benchmark DAX was up 301.45 points or 1.29% at 23,648.40 a little while ago.
Zalando, the top gainer in the benchmark index, is up 4.7%. Sartorius is gaining 4.5% and SAP is rising 4.4%. Siemens Energy is advancing by nearly 4%.
Infineon Technologies is climbing up 3.5% and Siemens is up 2.2%. Merck, Bayer, Daimler Truck Holding, Heidelberg Materials, Siemens Healthineers and Symrise are up 1 to 1.8%.
Adidas, Commerzbank, Brenntag and Rheinmetall are also up with notable gains.
Continental is tanking 20%. Auto parts and components supplier Aumovio, spun off from Continental, listed on the Frankfurt Stock Exchange today with a price of 35 euros ($41.43) per share.
Following the listing, Continental shareholders receive an additional Aumovio share for every two shares they hold.
Beiersdorf is down 2.1%, while Deutsche Bank and Volkswagen are down 1.6% and 1.4%, respectively. E.ON, Porsche Automobil Holding, BASF and RWE are down with moderate losses.
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