Stock Market's Dax Surges Following Federal Rate Reduction, With Aumovio Starting at €35
The German and global markets saw significant movements on Thursday, with various factors influencing the share prices of several companies and currencies.
The US Federal Reserve made headlines by cutting interest rates for the first time this year on Wednesday evening. This decision put pressure on the share price of chemical giant BASF, causing a 1.6% drop at the opening. The Fed also indicated further rate cuts, with up to two downward steps by 2025 possible.
Meanwhile, the DAX opened with a 0.9% increase to 23,570 points, buoyed by the US interest rate cut. The DAX will temporarily contain 41 titles due to the Aumovio spin-off from Continental. The spin-off action, conducted by Continental itself, launched Aumovio's Initial Public Offering (IPO) on the Frankfurt Stock Exchange in 2025 as part of its strategic move to separate its automotive division from the tire business. The first price of the Aumovio share was set at 35 euros.
Continental shareholders received one Aumovio share for every two Continental shares. Unfortunately, Continental shares fell by 16.04 euros to 56.94 euros. The new individual value of Aumovio will be removed from the DAX at the close of trading.
The euro depreciated against the dollar by 0.2% to $1.1795, while the leading Bund future remained unchanged on the bond market.
Elsewhere, the Euro Stoxx 50 and the MDax also improved by 0.5%. The price of an ounce of gold fell by 0.6% to $3,637, but the DWS share opened with a 1.5% increase to 52.65 euros. DWS could be of interest due to its reported preparation to sell its data center business NorthC.
The share price of BASF fell by 1.6% at the opening, a response to the US Federal Reserve's interest rate cut. Another cut could occur in 2026, according to Fed indications.
The DAX gained on Thursday after the US interest rate cut, with the exception of BASF. The spin-off of Aumovio from Continental is in focus on the German stock market. Aumovio starts at 35 euros, and the share price will be closely watched in the coming days.
The markets continue to evolve, with these events shaping the current financial landscape. Stay tuned for more updates as these stories develop.
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