FX.co ★ DAX 40 Edges Higher as Investors Digest Central Bank Moves

On Friday, the DAX 40 index in Frankfurt nudged up by 0.2% to close at 23,720. This followed a notable 1.4% rise on Thursday, marking the steepest daily increase since August 4. This rally came as investors took a pause after a week concentrated on decisions by major central banks. The Bank of Japan maintained its interest rates as anticipated but revealed plans to gradually reduce its holdings of Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs), suggesting a potential move towards winding down monetary stimulus earlier than previously expected. Earlier, the Federal Reserve had reduced borrowing rates for the first time since December, whereas the Bank of England chose to keep rates unchanged. Later in the day, markets might experience heightened volatility due to the expiration of futures contracts. On the economic data side, German producer prices fell more sharply than predicted in August. In corporate developments, the advertising conglomerate Ströer revised its full-year revenue and adjusted EBITDA forecasts downward, while Stabilus, an auto parts supplier, unveiled a cost-reduction strategy to ensure its competitiveness in the long term.