Frankfurt Stock Outlook: Dax expected to be positive after records on US stock exchanges

FRANKFURT (dpa-AFX) - Supported by new records in the leading US indices, the German stock market is expected to hold up well at the opening on Friday. Fresh inflation data from Germany came in as expected and is expected to provide little stimulus. Consumer prices rose by 2.2 percent in August compared to the same month last year.

The X-Dax signaled a 0.2 percent gain to 23,740 points for the DAX about an hour before the start of trading. The Eurozone's leading index, the EuroStoxx 50, is also expected to open with a slightly positive undertone.

On a weekly basis, the DAX has so far risen by 0.4 percent from its weak start to the month. It has been hovering around its 100-day moving average. This indicator of the longer-term trend is now providing resistance above 23,800 points.

The continued prospect of interest rate cuts drove both the Dow Jones Industrials and the broad-based S&P 500, as well as the tech-heavy Nasdaq 100, to new highs on Thursday. Meanwhile, even a major interest rate hike by the U.S. Federal Reserve of 0.5 percentage points seems possible. In any case, it is considered a given that the U.S. Federal Reserve will cut interest rates next week to stimulate the economy.

From a corporate perspective, it's likely to be a quiet end to the week in terms of news. Hannover Re shares, which gained almost 2 percent in pre-market trading on the Tradegate trading platform, could be worth a look. Previously, major bank UBS upgraded the reinsurer's shares from "Neutral" to "Buy" due to its prolonged below-average price performance. The stock has lagged behind other sector stocks both in 2024 and since the beginning of 2025 and is now available at a correspondingly low price, wrote analyst Will Hardcastle./edh/men

DE0008402215, DE0008469008, DE0008467416, US2605661048, EU0009658145, US6311011026, US78378X1072, DE000A0C4CA0, 2455711