DAX Index Hits Weekly High Supported by Central Bank Decisions

The German stocks ended Friday's session with a moderate increase, with the DAX index rising by 0.4% to close at 24,288 points, its highest level in a week, marking the second consecutive day of gains following a wave of monetary policy decisions by major central banks.

Central Banks Support Sentiment

Improved sentiment followed the European Central Bank's decision to keep interest rates unchanged, accompanied by a relatively more optimistic economic assessment, easing concerns about slowing growth in the Eurozone.

At the same time, the U.S. Federal Reserve implemented an expected interest rate cut of 25 basis points, which boosted risk appetite in global markets and provided additional support for European stocks.

Geopolitical Developments

On the political front, EU officials announced the approval of a new aid package for Ukraine worth €90 billion, avoiding the use of frozen Russian assets to finance this aid through loans, which reduced legal and political risks associated with the decision.

Stock Performance

The gains within the index were led by RWE, which rose by 1.7%, followed by:

• Commerzbank (+1.6%)

• Bayer (+1.6%)

• MTU Aero Engines (+1.6%)

Conversely, retail sector stocks faced clear pressure, with Zalando's shares falling by 2.8%, and Adidas down by 1.2%, impacted by weak results from their American counterpart, Nike, raising concerns about global consumer demand.

Weekly Overview

Throughout the week, the DAX index achieved gains of nearly 0.4%, indicating relative stability in the German market as anticipation continues regarding the trajectory of European monetary policy and global economic developments in the upcoming period.