DAX Rallies On Rate Cut Bets

(RTTNews) - German stocks rallied on Friday despite signs of an escalation in the conflict in the Middle East.

Rate cut expectations helped underpin sentiment after European Central Bank (ECB) President Christine Lagarde said on Thursday that the 'hardest and worst bit' regarding inflation was likely over and that the central bank will start lowering rates once inflation heads back to the 2 percent goal.

Meanwhile, the euro traded range-bound following the publication of the latest European Central Bank economic bulletin, highlighting the ECB's data-dependency stance on rate outlook.

The bulletin also highlighted slight contraction in euro area economy in 3Q 2023. The benchmark DAX was up 167 points, or 1 percent, at 16,714 after closing 0.9 percent lower the previous day.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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