FRANKFURT, Sept. 19 (Xinhua) — Germany’s benchmark DAX index surged over one percent on Thursday, closing at a record high. The DAX climbed 1.55 percent to end at 19,002.38 points, marking its first-ever close above the 19,000-point threshold.
During intraday trading, the index briefly touched an all-time high of 19,044.96 points before paring some gains. Analysts attributed the rally to the recent outsized rate cut by the U.S. Federal Reserve, which has fueled optimism for a potential soft landing of the U.S. economy, with positive spillover effects for the global market.
Among the 40 DAX stocks, Heidelberg Materials AG, a cement producer, led the gains with a 4.41 percent increase, while 11 stocks posted losses.
Although Germany’s economy remains sluggish, the Federal Reserve’s decision on Wednesday to cut interest rates by 50 basis points, its first reduction in four years, buoyed market sentiment. The European Central Bank has also eased its monetary policy, implementing rate cuts in June and September.
