Stock market index DAX begins at a new record level following the Federal Reserve's decision.
The euro weakened against the US dollar on Thursday morning, with one euro worth 1.1952 US dollars[8]. Despite this, the Frankfurt Stock Exchange opened with gains, as market optimism continued to be fueled by positive global economic indicators and market trends[1][2].
One of the key factors driving the positive sentiment was the strong corporate earnings reported by major German companies. Deutsche Bank, in particular, posted bumper profits, with revenues rising to 7.8 billion euros in Q2 2025[4]. This robust performance led to its shares jumping about 6% in early trading on the Frankfurt exchange[4].
The Germany Stock Market Index (DAX) rose by about 0.9% from the previous day's close, reaching approximately 14,730 points around 09:30 AM[6]. Other leading gains were seen in Volkswagen, Deutsche Bank, and Continental shares[2]. However, Linde, RWE, and Beiersdorf were still at the bottom of the list[1].
Oil prices continued to drop significantly, with a barrel of Brent crude trading at 67.28 US dollars at 9 AM German time[7]. This decline in oil prices, combined with the positive market trends, contributed to a favorable investment environment.
Market observers continue to attribute the positive sentiment to expectations of continued low interest rates in the US[1][9]. Additionally, advances in technology stocks and a recovering global economy often influence European markets, including Frankfurt[3].
Cryptocurrencies also contributed to a positive market mood, with Bitcoin and other major coins benefiting from the U.S. "Genius Act" signed recently to regulate stablecoins—a move perceived as beneficial for the crypto industry[5]. Although this is more peripheral to the stock market, it added to a generally favorable investment environment.
In summary, gains at the Frankfurt Stock Exchange on Thursday morning were driven by strong earnings reports from major banks like Deutsche Bank and overall positive global economic indicators and market trends, including stronger tech sector performance and regulatory clarity in cryptocurrency markets[2][3][4][5]. The DAX had not reached a new record high by 9 AM, but the overall trend was positive, with the index continuing to climb throughout the day.
In the context of the continuous positive global economic indicators and market trends, the German financial sector, such as Deutsche Bank, showcased strength through robust performances and significant earnings growth, contributing to a favorable investment environment across other industries and businesses. Meanwhile, the crypto industry also benefited from regulatory clarity, further adding to the overall positive sentiment.
