In the initial part of the year, US interest rates experienced a decline, while the US dollar saw a drop in value during the second half of the year.
Stock Markets Rise Worldwide, German Index Gains
In a day of significant gains for global stock markets, the German leading index (DAX) saw a 1.35 percent increase, closing at 23,674.53 points. The Euro Stoxx 50 also rose by 1.62 percent, while the Dow Jones Industrial, S&P 500, and Nasdaq 100 all reached record highs, closing up for the day.
The tech sector was particularly sought after on the German stock market, with tech stocks seeing a surge in demand. SAP and Infineon, Dax heavyweights, had price gains of 5.4 and 3.2 percent, respectively.
In the FTSE 100, the UK's index of leading shares, and the Swiss SMI, both rose moderately. The US Federal Reserve (Fed) also cut interest rates for the first time this year, by 0.25 percentage points, a move that is expected to boost equity markets.
The Fed indicated up to two further rate cuts by 2025 and another cut in 2026, a move that has been interpreted as a sign of continued economic support.
In the German corporate sector, there were mixed fortunes. Norma rose by 2.2 percent due to binding offers for its water management business. However, Krones lost another 4.1 percent following an unconvincing capital market day and a downgrade to 'Neutral' by Exane BNP. BASF shares suffered a 1.2 percent loss due to a downgrade by Bank of America to 'Underperform'.
Continental's share price closed 4.5 percent higher after adjusting for the spin-off of its auto parts supplier AUMOVIO. AUMOVIO shares opened at 35 euros and closed at 38.62 euros, making it one of the biggest gainers in the SDax.
In other news, Tui closed 0.9 percent higher, announcing plans to build hotels in Oman with Omran, who will hold 1.4 percent of Tui after subscribing to new shares. Shares in Verve Group gained 7.5 percent, becoming one of the biggest gainers in the MDax of medium-sized companies.
However, Puma's share price declined 2.9 percent due to skepticism about takeover speculation, and Zalando gained 5.3 percent due to a multi-million dollar share purchase by a major shareholder.
Notably, the Dax temporarily included 41 instead of the usual 40 titles to ensure tradability for the spin-off of Continental's auto parts supplier AUMOVIO. The new stock was then removed from the Dax at the close of trading.
Norma is negotiating with a small number of potential buyers in advanced, non-exclusive talks for its water management business, but the identities of these buyers have not been disclosed publicly yet.
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