Slowing U.S. interest rates hinder inflation progression
DAX Experiences Sustained Growth Amidst Mixed Market Conditions
The DAX, Germany's blue-chip index, experienced a notable positive impact on August 6, 2025, due to robust US economic data. The index rose by approximately 0.33% to close at 23,924.36 points, continuing a multi-day upward trend.
This gain was part of a broader short-term rally where the DAX had been up for three consecutive trading days, gaining over 2% in that period. On the following day, August 7, 2025, the DAX extended this momentum more significantly, rising 1.12% to 24,192.50 points. This marked the largest four-day point gain since early May and the longest winning streak since late May 2025.
The US employment data showed 144,000 job openings, higher than the expected 107,000. Market analyst Andreas Lipkow attributed the DAX's performance to this robust US economic data.
However, Adidas, a major German company, experienced losses despite a significant increase in sales and profits in Q2. The company is hesitant to raise its profit forecast due to existing trade risks.
Energy prices and currencies also influenced the DAX's performance on Wednesday. The gas price for delivery in August increased by 1 percent, with one MWh costing 35 euros. If the gas price persists, a consumer price of around 8 to 10 cents per kWh (including ancillary costs and taxes) may be expected.
The European common currency weakened on the foreign exchange market. At 5 pm German time on Wednesday, one euro was traded at 1.1482 US dollars, while one US dollar was equivalent to 0.8709 euros.
The DAX's recovery in the morning and stable performance in the afternoon kept its value above the previous day. Symrise and Mercedes Benz, two other German companies, also experienced losses in the Dax.
Technical and market commentary from the days around August 6 described the market as balancing optimism and caution, with key technical indicators suggesting potential further upside but noting some hesitation on volume and resistance levels near 24,000 to 24,500 points.
In summary, the robust US economic data helped fuel sustained buying interest in the DAX, leading to a steady climb over several days, reflecting improved sentiment and investor confidence in the broader market environment. However, the performance of individual companies like Adidas and Symrise, among others, varied, highlighting the complexities of the global market.
The robust US economic data, as evidenced by the increased number of job openings, contributed to the sustained growth of the DAX, Germany's blue-chip index, as market analyst Andreas Lipkow suggested. On the other hand, the financial performances of individual companies within the DAX, such as Adidas and Symrise, have shown mixed results, demonstrating the intricate relationship between the overall market and individual sectors.
