Germany’s DAX tops 27,000 pts for first time

Germany's DAX stock market index reached a new milestone on Thursday, surpassing the 27,000-point mark for the first time, closing at 27,001.67 in early trading. This rise reflects a 10 percent increase since the start of the year. The upbeat market mood can be attributed to hopes for a diplomatic resolution to the US-Iran conflict, falling oil prices, and a resurgence in the technology sector.

Positive corporate earnings, particularly from industrial giant Siemens and insurance company Allianz, have also contributed to the stock gains. Siemens increased its medium-term financial targets for the 2026/27 fiscal year, leading the DAX rise, while Allianz reported strong results in the first nine months of 2026, buoying share prices.

Analyst Jochen Stanzl of Consorsbank anticipated an "year-end rally" based on the stock price gains. Despite these positive developments, the German economy faces challenges, with job cuts in the industrial sector. Investors, however, remain focused on future profits across the 40 DAX companies. The positive market sentiment last week was also fueled by Democrats' victory in the US midterm elections, which raised hopes for a more diplomatic US foreign policy.

However, a recent downturn in the tech sector, particularly Nvidia's 7 percent drop following reports of possible CEO Jensen Huang replacement, has cast a shadow over the overall positive trend. Nvidia's shares plummeted alongside Infineon's 2.8 percent downturn, the worst performers on the DAX.