FX.co ★ DAX Inches Higher Ahead of Central Bank Week

Frankfurt's DAX 40 index increased by 0.4% to reach 23,790 on Monday, edging closer to its peak since September 1. This movement comes as investors considered the implications of Fitch's downgrade of France's credit rating and anticipated a week filled with central bank meetings. The US Federal Reserve is anticipated to reduce rates by a minimum of 25 basis points on Wednesday, with this decision occurring amidst concerns regarding its independence as it navigates a cooling labor market and tariff-induced inflationary pressures. In contrast, both the Bank of England and the Bank of Japan are expected to maintain their current policies. On the corporate front, Rheinmetall experienced a surge of over 2% following its agreement with the Bremen-based shipbuilder Lürssen to acquire their military division, NVL. Meanwhile, Airbus saw gains exceeding 1% after reports surfaced that the company might finalize a European satellite alliance with Leonardo and Thales as early as 2025. Adding to the positive market sentiment, RBC increased its price target for Airbus from €200 to €220.