Germany's DAX tops 27,000 points for first time

Germany's benchmark DAX stock market index rose above 27,000 points for the first time on Thursday, hitting 27,001.67 in morning trading.

The key index has risen by over 10% since the beginning of the year.

Hopes for a resolution to the war between the US and Iran and falling oil prices, together with a recently revived technology sector, are seen as the main reasons for the current upbeat mood on the markets.

Strong corporate earnings reports out of Germany have also buoyed stock prices, such as from industrial group Siemens and insurance giant Allianz. 

Siemens announced that for the new fiscal year 2026/27 it was raising its medium-term financial targets. The stock rose 4.8%, leading the upwards push in the DAX.

Allianz is also more optimistic about 2026 following record results in the first nine months. Strong performance in the investment fund business helped the insurer offset heavy losses from natural disasters this summer, and Allianz shares rose 1.9%.

Analyst Jochen Stanzl of Consorsbank wrote that "the year-end rally is under way."

The stock price gains stand in contrast to some bad news from the German economy. In the industrial sector in particular, companies are cutting thousands of jobs. However, investors often focus not on the current situation, but on the future profits of the 40 DAX companies.

The positive sentiment on the stock markets last week was also triggered by the Democrats' decisive victory in the US midterm elections. The election victory fuelled hopes that the US might adopt a more conciliatory approach to foreign policy, for example with regard to President Donald Trump's trade tariffs.

In contrast to the overall positive trend in the technology sector, however, sentiment in the industry has taken a turn for the worse in recent days due to media reports about the possible replacement of Nvidia boss Jensen Huang following an affair with an alleged Chinese spy. Huang has been a major advocate for the growth of AI.

Nvidia shares plummeted 7%, while on the DAX Infineon shares were the worst performers, down 2.8%.