DAX Hits Record High as German Markets Rally

The German stock index surged 1.47% to close at 23,419.48 points, driven by financial stimulus expectations and strong corporate performance.

The DAX reached a record high of 23,419.48 points, marking a 1.47% increase, supported by a late-session rebound influenced by U.S. market trends.
A historic €500 billion financial package for infrastructure and defense, agreed upon by Germany's Union and SPD parties, boosted investor confidence across multiple sectors.
The European Central Bank announced its sixth interest rate cut since mid-2024, reducing rates to 2.5% and signaling a potential pause in April before further reductions later in 2025.
Key corporate performers included DHL, which saw a 14.2% surge after announcing cost-cutting measures and an expanded stock buyback program, and Lufthansa, leading the MDAX with a 12.2% gain on better-than-expected earnings.
Infrastructure and defense stocks, such as Heidelberg Materials and Rheinmetall, also saw significant gains, reflecting optimism tied to the German stimulus package.