FX.co ★ DAX Hits Record High

The DAX 40 advanced 2.2% to a record closing high of 25,546 on Thursday, outpacing other major European indices. Market sentiment was supported by a newly announced government reform package, positive corporate news, and fading expectations of further interest rate hikes by the Federal Reserve and the European Central Bank.

Earlier in the day, Chancellor Friedrich Merz’s coalition presented an ambitious set of reforms designed to stimulate growth. The package includes €10 billion in tax cuts for lower-income households, changes to the pension system, and initiatives to expand the supply of affordable housing.

Among individual stocks, Bayer was a standout, jumping 8.2% after announcing plans to bundle its U.S. operations related to the controversial glyphosate-based weedkiller into a separate subsidiary named Ruveon. Following the move, Deutsche Bank analysts upgraded Bayer to “Buy” from “Hold.”

Real estate group Vonovia climbed 6% after JPMorgan initiated coverage with a “Buy” rating. Deutsche Bank shares added 5.2%, supported by a price target increase from Morgan Stanley and news that the bank had reached a collective bargaining agreement at its Postbank unit.