Frankfurt's DAX continued its ascent, surpassing the milestone of 24,400 on Thursday afternoon and reaching new record highs. This positive trend followed the European Central Bank's (ECB) anticipated policy announcement. The ECB reduced its deposit rate from 2.25% to 2%, marking the eighth consecutive rate cut amid alleviating inflation and trade-related threats to regional economic growth. Additionally, the ECB adjusted its inflation forecasts downward for 2025 and 2026.
On the domestic front, German factory orders saw an unexpected increase in April, contrary to predictions of a decline, signifying strong domestic and euro area demand. Leading the index, Bayer experienced a surge of over 5%, driven by Goldman Sachs upgrading its stock from Neutral to Buy and the US Food and Drug Administration's approval for expanded use of its prostate cancer drug, Nubeqa. Other significant performers included Heidelberg Materials and Rheinmetall, which rose by 4.3% and 3.6%, respectively.
