Despite persistently high inflation and uncertainties in the economy, the stock market is doing well. The Dax reaches a new record.

The Dax reached a new high on Friday. With a daily increase of 0.8 percent to 16,292 points, the German leading index left its previous record from November 2021 in the afternoon.

After weeks of banter just below 16,000 points, cautious optimism about progress in the dispute over raising the US debt limit to avert an impending US insolvency brought fresh impetus to the German stock market.

Dax record from November 2021 exceeded

The previous Dax record of around 16,290 points dates from November 2021, before Russia’s war against Ukraine and rising key interest rates due to high inflation pulled down stock markets worldwide in 2022. Things have been going well again since autumn 2022, and the Dax has recovered sharply to almost 12,000 points since the September slide.

Economic optimism after the end of China’s corona restrictions

This was also ensured by economic optimism after the end of China’s tough corona restrictions before the turn of the year. Although the Chinese economy, an important driver of the global economy, is still faltering, especially in industry, there are also positive signals.

“In the current reporting season, European manufacturers of automobiles, luxury goods and sporting goods are confirming a healthy recovery in Chinese sales, even if the strong upswing from the first quarter does not appear to be sustained over the entire year,” explained analyst Sven Streibel from DZ Bank recently.

Rise of the arms company

A Leopard 2A6 of the Bundeswehr‘s 203rd tank battalion drives over the Senne military training area.