German stocks experienced a significant increase on Friday. This shift came in the wake of overnight data which reported a drastic rise in weekly unemployment claims in the U.S., thereby fueling optimism that the Federal Reserve would begin to decrease interest rates within the year.
Subsequently, the value of the dollar decreased alongside bond yields, embodying investors' anticipations that the Federal Reserve may reduce interest rates in either September or November.
All eyes are now on the impending U.S. producer price index (PPI) and consumer price index (CPI) for April, which investors hope will signal that inflation is again moving towards the Federal Reserve’s aim of a 2 percent rate.
The DAX, Germany's stock index, increased by 129 points - a 0.7 percent rise - standing at 18,815. This comes after a 1 percent increase just the day before.
Furthermore, online retail company, Zalando, saw a jump of over 3 percent in shares after Berenberg upgraded its rating for the stock from "hold" to "buy".
