The November rally on the German stock market continued on Wednesday. Hopes of interest rate cuts soon pushed the Dax to its highest level since the beginning of August. The leading index passed the 16,200 point mark for the first time in almost four months. It crossed the finish line 1.1 percent higher at 16,166 points. The MDax rose by 1.2 percent to 26,313 points.
The assumption that interest rates will soon fall again is gaining ground on both sides of the Atlantic. In Europe, this had to do with the fact that inflation in Germany weakened much more significantly than expected in November. The Dax’s previous record high is also getting closer. The German stock market barometer reached this point at just under 16,529 points at the end of July. He has now increased his price gains since the low in October to almost 11 percent.
Optimism about interest rates particularly drove the real estate sector. Vonovia gained 1.7 percent in the Dax and LEG gained 1.9 percent in the MDax. Aroundtown, however, remained largely excluded from the good mood according to nine-month figures with minus 6.9 percent. There was still a recovery, however, as the shares had fallen by up to 11 percent that morning. The bottom line is that the commercial real estate specialist is deeply in the red due to the weak environment.
Reclassifications moved some car stocks out of the Dax. The US bank JPMorgan was particularly cautious about VW, while assessing BMW more positively. BMW rose by 3.0 percent. VW recently shook off its early losses and rose by 1.0 percent.
BVB is gaining ground
Borussia Dortmund gained 7.6 percent as the second strongest value. The Bundesliga club mastered the toughest group in the Champions League with flying colors and reached the round of 16 early.
Little movement on Wall Street
The ongoing hopes for an easing of monetary policy only initially revived the recently flagging price rally on the US stock exchanges on Wednesday. A flood of company news was received largely positively by the market.
The technology-heavy Nasdaq 100 reached its highest level since the beginning of 2022 in early trading. Most recently, however, it only claimed a gain of 0.15 percent to 16,033 points. The S&P 500 recorded an increase of 0.2 percent to 4,562 points after previously reaching its highest level since the end of July. The leading index Dow Jones Industrial lagged slightly behind with a price increase of 0.1 percent to 35,449 points.
Oil prices rise thanks to the weakness of the dollar
Oil prices rose slightly on Wednesday. A barrel (159 liters) of North Sea Brent for delivery in January cost $81.9 in the morning. That was 21 cents more than the day before. The price for a barrel of the US variety West Texas Intermediate (WTI) rose by 32 cents to $76.7.
Market participants explained the higher prices with the recent weakness of the dollar. It has lost value in trading with other major currencies. This makes crude oil traded in dollars cheaper on the global market, which leads to stronger demand and thus higher oil prices.