DAX rises 0.6% as US bank rate cut hopes ease downturn fears
German markets showed cautious optimism on Tuesday as the DAX climbed 0.6% to close at 23,239 points. The gains came after renewed hopes for US bank interest rate cuts eased fears of a sharper downturn. Meanwhile, Bayer’s shares hit a yearly high following positive trial results for its stroke drug.
The DAX avoided steeper losses after Federal Reserve Chair Jerome Powell signalled on Monday that further stock market rate cuts remained possible. His comments, made during a press conference, lifted investor sentiment and triggered a relief rally on Wall Street. Bond markets now price in a 70% chance of a third stock market rate cut this year.
The DAX’s modest recovery reflects investor confidence in potential US bank monetary easing. Bayer’s pharmaceutical success and rising commodity prices added to the day’s gains. Yet, the mixed performance across sectors highlights lingering uncertainty in global markets.
