DAX Gains One Percent, Hits New All-Time High
The German DAX index gained 1.0% on Friday, hitting a new all-time high of 15,674.66. The index was boosted by strong earnings reports from some of its largest companies, including Deutsche Bank and Siemens.
Deutsche Bank Reports Strong Earnings
Deutsche Bank reported a 26% increase in net income for the fourth quarter of 2023, beating analysts’ expectations. The bank’s revenue also rose by 4%, driven by strong growth in its investment banking and asset management businesses.
Siemens Reports Record Profits
Siemens reported a record profit for the fiscal year 2023, driven by strong demand for its industrial automation and digitalization products. The company’s revenue also rose by 7%, reaching a new all-time high.
Other Factors Contributing to DAX Gains
In addition to the strong earnings reports from Deutsche Bank and Siemens, other factors that contributed to the DAX’s gains on Friday included:
- Positive economic data from China, which showed that the country’s economy is growing at a faster-than-expected pace.
- A weaker euro, which makes German exports more competitive on the global market.
- Increased investor confidence in the German economy, which is expected to continue to grow in 2024.
Outlook for the DAX
Analysts are generally optimistic about the outlook for the DAX in 2024. The index is expected to continue to benefit from strong earnings growth from its largest companies, as well as from the ongoing recovery of the global economy. However, geopolitical risks, rising interest rates, and the ongoing war in Ukraine could pose challenges for the index in the coming months.
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