Financial expert: Dax breaks record due to falling key interest rates - year-end rally continues

Financial expert: Dax breaks record due to falling key interest rates - year-end rally continues

According to a report by www.faz.net,

The DAX broke its record on Tuesday and rose to 16,551 points, an increase of 0.78 percent. The driving force behind this increase is the prospect of falling key interest rates, which fills investors with optimism. Inflation has fallen significantly in the eurozone, leading the European Central Bank to rule out further interest rate hikes for the time being. In the USA, the Federal Reserve also gave indications of a possible move away from restrictive monetary policy.

The prospect of falling interest rates is leading professional investors to assume that the period of interest rate hikes is over and stocks will be the best asset class next year. In the US, however, stock prices fell moderately, mainly due to upcoming economic data and negative commentary on China's creditworthiness.

The impact of this record high and the prospect of falling interest rates could be significant. For the market, this means increased investment activity and a possible shift in investment strategies towards riskier investments such as stocks. For consumers, this could mean lower loan interest rates and more favorable financing conditions. The financial services industry could benefit from increased demand for investment products, while the real estate market could benefit from lower mortgage rates. However, this could also lead to increased speculation and possibly a bubble in the markets.

Overall, developments on the stock markets are influenced by expectations of monetary policy. If central banks do indeed pursue looser monetary policy, this will likely continue to have a positive impact on financial markets. However, it is important to monitor these developments closely and pay attention to potential risks.