Carried by good corporate balance sheets, the Dax crossed the 16,000 mark for the first time on Friday. The main German index recently hit a high of 16,003.79 points. It was not until the end of March that the Dax crossed the 15,000 point mark for the first time, and on January 7 it exceeded 14,000 points for the first time.
Since the start of the year, the index has gained more than 16%. In recent weeks, many sectors have received positive economic signals and signs of a global economic recovery have multiplied. The quarterly balance sheets of many companies have mostly shown an increase in sales and profits, the number of unemployed in industrialized countries is declining again.
There have also been some positive signals recently from US inflation data released on Wednesday. However, there are still bottlenecks for raw materials, a lack of supply of computer chips and, last but not least, the spread of the delta variant of the corona virus. The upward trend of the stock markets is supported by the still very low level of interest rates and the large purchases of bonds by central banks.
Although inflation rates have risen dramatically in Europe and the United States lately, central banks are unwilling to give up their race for cheap money just yet. Investor concerns about an even sharper rise in US inflation were not confirmed this week. Although US inflation remained high in July at 5.4% year-on-year, it did not accelerate.
In Germany, the inflation rate in July was 3.8%. A still high level of inflation in the United States could intensify speculation that the US Federal Reserve could exit its extremely accommodative monetary policy. This can have a detrimental effect on the stock market as other asset classes then become more attractive again.