German DAX Climbs Near Record High, Surpassing 21,700
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The German DAX index continued its upward trajectory on Thursday, surpassing the 21,700 mark and approaching all-time highs.
This positive momentum was fuelled by a combination of robust corporate earnings reports and a temporary easing of concerns regarding escalating global trade tensions.
Siemens Healthineers emerged as a standout performer, with its shares soaring by approximately 8% on the Frankfurt stock exchange.
The medical technology company reported first-quarter revenue of €5.48 billion, slightly exceeding analysts’ expectations of €5.37 billion.
This impressive performance came despite ongoing challenges in the Chinese market, where the company experienced a 6% decline in revenues due to “continued delays in customer orders”.
Notably, Siemens Healthineers reaffirmed its full-year guidance for fiscal 2025, projecting comparable revenue growth of 5% to 6% compared to 2024.
Another significant contributor to the DAX’s gains was Infineon Technologies, a semiconductor manufacturer, which saw its stock price climb by 4.7%.
This surge in Infineon’s shares reflects the broader optimism surrounding the technology sector and its potential for growth in the coming years.
Investors continue to closely monitor the interest rate outlook, particularly in light of the upcoming Bank of England rate decision.
The market’s resilience in the face of potential monetary policy shifts underscores the current strength of investor sentiment.
The DAX’s performance is especially noteworthy given the backdrop of ongoing economic challenges in Germany.
Despite recent data suggesting a potential winter recession and concerns about industrial job cuts at prominent firms like Thyssenkrupp and Bosch, the stock market has demonstrated remarkable resilience.
This divergence between economic indicators and stock market performance can be attributed to the global nature of many DAX-listed companies, whose revenues are largely generated outside of Germany.
As the DAX continues to flirt with record highs, market participants remain cautiously optimistic, balancing positive corporate earnings against broader macroeconomic uncertainties and the evolving landscape of global trade relations.
Source: Trading Economics