The German blue-chip DAX index closed at a record high on Friday, lifted by remarks from US Federal Reserve Governor Kevin Warsh that reinforced expectations for tighter monetary policy. The index peaked at 26,618.74 points, surpassing its prior record of 26,573.50 set two weeks ago, before settling at 26,569.99, up 0.77% on the day. For the week, the DAX gained more than 1.5%, while the mid-cap MDax rose 0.25% to 33,029.91 points.
Analysts at Capital Economics noted that Warsh’s comments at the Jackson Hole symposium in Wyoming bolstered his credibility on inflation, with the Fed official signaling openness to a September rate hike. Market pricing continues to favor higher rates, yet investors appeared to weigh the risks as manageable. "The glass remains half full rather than half empty on the Frankfurt trading floor," said Timo Emden, market analyst at CapTrader. Earlier in the week, strong quarterly results from US tech giants including Nvidia and Salesforce had already supported risk sentiment, while declining oil prices further improved market mood.
The Euro Stoxx 50, the region’s benchmark, climbed 0.95% to 6,485.67 points. Outside the eurozone, major indices in London and Zurich edged higher, while US benchmarks such as the Dow Jones Industrial and Nasdaq 100 showed little movement during European trading hours.
Automakers led gains in the DAX, with BMW shares surging 4.5% after Citi upgraded its stance. Volkswagen and Mercedes-Benz each advanced roughly 3%, while Siemens reached a new record close, up 1% as it recovered from earlier profit-taking following its recent earnings report. Chemicals also outperformed, with BASF and Brenntag among the top gainers in the DAX, and Lanxess and Wacker Chemie posting strong gains in the MDax.
Industrials continued to rally, with Deutz shares hitting their highest level since 1998 and closing 4% higher. The Cologne-based engine manufacturer cited its acquisition of Flensburger Fahrzeugbau Gesellschaft (FFG) as a key driver, expanding its presence in the defense sector. In contrast, Traton shares fell 1.4% after UBS downgraded the commercial vehicle maker from "Buy" to "Neutral," citing a conservative margin outlook despite potential upside.
Software group Nemetschek slipped 0.9% after a nearly 10% rally the previous day, with traders citing a weaker cash flow outlook from US peer Autodesk as a modest headwind. In the SDax, pharmacy services firm Redcare Pharmacy dropped 5.9% as its outgoing CEO Olaf Heinrich announced his departure, with Peter Schmid of Linstow set to take over in April 2026.
