Experts see DAX record driven by falling key interest rates

Experts see DAX record driven by falling key interest rates

According to a report by www.faz.net, the Dax broke its four-month-old record on Tuesday and reached a new high of 16,551 points. This development is driven by the expectation that key interest rates will fall again, which leads to hope for an economic tailwind.

The DAX gained 9.5 percent in value in November alone and has risen by 13 percent since its interim low in October. The prospect of falling interest rates in the European Monetary Union and the United States is giving investors positive impulses.

The monetary policy of the central banks, which consider interest rate increases to be unlikely due to the decline in inflation, is also contributing to the positive market development.

The impact of these developments on the market is significant. The prospect of falling interest rates encourages investors, leading to higher stock prices and a positive market environment. The period of interest rate hikes has been declared over and experts expect stocks to be the best asset class next year.

The US stock markets, on the other hand, are recording moderate losses due to upcoming economic data and a negative comment from the rating agency Moody's on China's creditworthiness. Nevertheless, the Dow Jones Industrial, S&P 500 and Nasdaq 100 have gained double-digit percentages since their October lows and are heading towards historic highs.

Overall, the market reaction to the prospect of falling interest rates and the withdrawal of the phase of interest rate hikes shows that investors are hopeful that this will lead to positive economic developments.