Skip to content
Finance — Investing — Tech's Latest Innovations — Unveil the Latest Gadgets

European Markets Surge to Records as Fed Rate Cut Hopes Rise

Markets defy US political uncertainty, driven by hopes of Fed rate cuts. DAX nears record high, while Siemens Energy and Hochtief shares soar.

,   and  Administrator
2 min read
This is the aerial view of a city. in this we can see buildings, towers, motor vehicles,...
This is the aerial view of a city. in this we can see buildings, towers, motor vehicles, advertisements, sign boards, roads, trees, street poles, street lights, sky, persons, traffic cones, advertisement and information boards.

European Markets Surge to Records as Fed Rate Cut Hopes Rise

European markets have surged to record or near-record highs, boosted by optimism in the US stock market today and expectations of further interest rate cuts by the Federal Reserve. The German DAX index approached its all-time high, while Siemens Energy and Hochtief shares hit new peaks.

The DAX climbed 1.3% to 24,415 points on Thursday, nearing its record high of 24,639 points set in July. Investors are hopeful that the index will break through this barrier, driven by positive signals from US stock market today and anticipation of additional Fed rate cuts by the end of October. The MDAX and EuroStoxx 50 also gained, by 1.4% to 30,876 points and 1.2% respectively, although they are not yet challenging their record highs.

Market optimism is fueled by expectations of meaningful US stock market today interest rate cuts. Despite the ongoing government shutdown in the US, investors defied the political uncertainty, pushing the S&P 500 and Nasdaq 100 indices to new records. This is the 21st shutdown since the 1970s, but markets have shown resilience, averaging eight days in length. Meanwhile, Siemens Energy shares jumped 5% after hitting an all-time high of around 110 euros, while Hochtief shares reached a record high following a buy recommendation from Bank of America analysts. The DAX has gained 22.6% so far this year.

The probability of a further rate cut by the Fed at the end of October is now being put at 99% on the market, which is expected to stimulate global markets including the DAX. European markets are poised for further gains, with the DAX eyeing its record high and other indices showing strength. Despite political headwinds in the US, investors remain optimistic about the outlook for corporate earnings and economic growth.

Read also:

Related

Latest