The DAX 40 held on to its early gains on Friday afternoon, trading near its record high of 26,520, with auto stocks leading the advance as investors digested Fed Chair Kevin Warsh’s remarks at the Jackson Hole Economic Symposium. Warsh struck a distinctly hawkish tone, stressing that inflation remains elevated and has not yet made sufficient progress toward the 2% target. His comments implied that tighter monetary policy could be justified if the pace of disinflation does not accelerate.
Auto stocks extended their strong rally into the weekend. BMW led the index, rising 3.8% after receiving a more upbeat assessment from Citigroup. Utilities, chemical producers, banks, insurers, and software companies also advanced, while chipmaker Infineon Technologies slipped 0.2%.
