The DAX surged to a fresh record on Friday afternoon, climbing 0.8% to 26,580.64 points, surpassing the prior intraday high of 26,573.50 points. The advance extended the index’s 2025 gain to approximately 8.5%, erasing earlier losses tied to geopolitical tensions in the Middle East.
U.S. Federal Reserve Governor Kevin Warsh, speaking at the annual Jackson Hole symposium, reiterated concerns over elevated inflation risks, stating that the Fed would need to act if price pressures did not move toward the 2% target in a timely manner. Warsh also expressed confidence in the economy’s resilience, while analysts at Capital Economics noted that his remarks bolstered the Fed’s credibility on inflation control.
Market sentiment was further supported by a pullback in oil prices, which eased inflationary pressures, according to Jürgen Molnar, market strategist. The retreat in crude coincided with reports of a potential exit by Venezuela from OPEC, adding to volatility in energy markets.
Gains in the DAX were broad-based, with German automakers leading advances. Shares of BMW, Mercedes-Benz and Volkswagen rose between 2.1% and 3.9%, extending gains from the prior session and ranking among the index’s top performers.
Economic data provided additional tailwinds, including the latest Ifo Business Climate Index, which signaled improving business sentiment. Carsten Klude, chief economist at M.M. Warburg & Co, cited stronger corporate earnings, improved macroeconomic indicators and positive leading indicators as factors supporting further upside for German equities despite ongoing structural challenges.
