FRANKFURT (dpa-AFX) – The DAX continued its recovery from Friday’s slide at a slower pace. The German benchmark index rose 0.37 percent to 23,846.07 points on Tuesday, after gaining 1.4 percent the previous day. The MDax index of medium-sized companies rose by 0.89 percent to 30,824.66 points.
“Stock buyers feel motivated by a kind of monetary policy rescue package,” wrote market analyst Jochen Stanzl from the trading house CMC Markets. Friday’s weak US labor market data was reflexively followed by increased speculation that the US Federal Reserve would cut interest rates in September. Lower interest rates make stocks look more attractive than fixed-income securities.
Market analyst Christian Henke from the trading house IG added: “Resistance within the US Federal Reserve to a loose monetary policy is crumbling. Much to the chagrin of Fed Chairman Jerome Powell.” This is because inflation is still too high for the top…
