German stock index (Dax) reaches historic high - financial expert analyzes impact on investors

German stock index (Dax) reaches historic high - financial expert analyzes impact on investors

According to a report by www.zeit.de, the German stock index (Dax) has reached a historic high of 16,731.66 points. This record was set just a few days ago when the Dax rose to 16,533.87 points. The DAX measures the performance of the 40 largest listed companies and increased by 9.5 percent in November alone. From a low in October, which was close to the annual low in March, the current increase is more than 13 percent.

The expectation that the central banks in the euro zone and the USA are not planning any further interest rate increases and that cuts are likely to be made in 2024 has been a key selling point for investors in recent weeks. Falling interest rates were seen as a signal of an impending economic recovery, especially after the inflation rate also fell noticeably.

Inflation had previously been triggered, among other things, by the rise in energy prices as a result of Russia's war of aggression on Ukraine in February 2022. Inflation has now also fallen significantly in the euro zone. In November, consumer prices were only 2.4 percent above the level of the same month a year ago.

Recent events indicate a positive development in the stock market, which can also be interpreted as a reaction to lower inflation rates and the prospect of lower interest rates. The expectation of an economic recovery as a result of these developments could promote further growth in the stock market.