DAX Continues Recovery, AI Sentiment Boosts Frankfurt Stocks

The DAX index in Frankfurt extended its recovery, rising 0.4% to 24,369 points, driven by strong quarterly results from US tech giants Microsoft and Meta, which boosted hopes for Artificial Intelligence (AI). The MDAX and EuroStoxx 50 also gained 0.3%. Despite volatile trading, the DAX is on track for a two percent monthly increase.

The DAX index in Frankfurt extended its recovery, rising 0.4% to 24,369 points on Thursday, driven by strong quarterly results from US tech giants Microsoft and Meta, which boosted hopes for Artificial Intelligence (AI). The MDAX and EuroStoxx 50 also gained 0.3% [1].

The German benchmark index was estimated to be 0.3% higher at 24,334 points two hours before the start of trading on Xetra [1]. Well-received quarterly figures from Microsoft and Meta, which are leading the AI revolution, lifted the mood on the market. Investors are now eagerly awaiting the business figures from Apple and Amazon later in the evening [1].

The DAX's performance was also influenced by the US Federal Reserve's decision to leave its key interest rate unchanged the previous evening. Although an interest rate cut in September was initially expected, it now seems less likely [1]. The Japanese central bank also left its key interest rates unchanged, leading to a rise in the Japanese stock market. Meanwhile, the Chinese stock market fell slightly due to weaker economic data [1].

Despite volatile trading, the DAX is on track for a two percent monthly increase. The recovery is also supported by a softer inflation outlook, which could raise expectations for an ECB rate cut, further boosting the index [4].

The top performers on the DAX included Commerzbank AG, Siemens Energy AG, and Siemens Healthineers AG, while Adidas AG, Symrise AG, and Mercedes Benz Group AG were among the worst performers [3].

In the broader crypto space, Planck, an infrastructure protocol targeting the AI boom, launched a layer-0 blockchain aimed at supporting decentralized AI networks [2]. This move aligns with a growing push within the crypto industry to bring Web3 principles of decentralization to AI development.

The DAX volatility index, which measures the implied volatility of DAX options, was down 3.44% to 17.35, indicating a relatively calm market sentiment [3]. Gold futures for December delivery were down 1.01%, while crude oil for delivery in September rose 1.46% [3].

The EUR/USD was down 0.65% to 1.15, while the EUR/GBP was unchanged at 0.10% [3]. The US Dollar Index Futures was up 0.64% at 99.28 [3].

References:
[1] https://www.marketscreener.com/news/dax-flash-dax-continues-to-recover-a-ai-fantasy-lifts-stock-market-sentiment-ce7c5fdcdd8cf720
[2] https://www.tradingview.com/news/cointelegraph:0dee69e5f094b:0-planck-launches-layer-0-blockchain-for-artificial-intelligence/
[3] https://www.investing.com/news/stock-market-news/germany-stocks-mixed-at-close-of-trade-dax-up-023-4160646
[4] https://www.fxempire.com/forecasts/article/dax-index-news-dax-eyes-24500-on-softer-inflation-outlook-and-fed-signals-1537668