Summary:
The DAX 40 hit a record high on Thursday, boosted by strong Siemens earnings and optimism over a potential Russia-Ukraine peace deal.
The DAX 40 closed at a record high on Thursday, as investors cheered upbeat earnings from German industrial giant Siemens, while sentiment was also buoyed by signs of a peace deal between Russia and Ukraine.
Siemens struggling with China slowdown advanced 7.2% after its Q1 beat estimates, and it highlighted signs of recovering demand from customers in sectors like electronics and semiconductors.
The CAC 40, the worst performer among major European markets in 2024, also came within a whisker of its record high. Michelin stocks soared on a better-than-expected earnings report.
The Stoxx 50 index has gained roughly 12% so far in the year on expectations that US tariffs could result in the ECB increasing its pace of interest rate cuts and that a weak euro could bode well for export-oriented companies.
The FTSE 100 eased from its all-time peak, but a weak pound helped cap its losses. The UK economy grew by 0.1% in the fourth quarter, beating expectations of a moderate contraction, according to the ONS.
Economists had widely expected the British economy to end the year on a low note and have downgraded their growth forecasts for 2025 considering higher taxes and high interest rates.
The CAC 40 has shown a gold cross, a bullish signal pointing to strong momentum ahead. Clearly the resistance lies at 8,260 it hit last year.
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