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New Record in Dax 40 as ECB Prepares for More Rate Cuts, FTSE, CAC, Ibex Also Higher

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MARKETS TREND

The European stock markets started the week on the bullish foot as the ECB mentions March rate cuts, with Dax 40 reaching a new record high.

Main German stock index DAX 40

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European stock markets opened the week on a strong note, with Germany’s DAX and Italy’s FTSE MIB leading the gains. In contrast, the US stock and bond markets remained closed due to a public holiday, resulting in a quiet start for Wall Street. This temporary break comes ahead of an anticipated influx of political and economic news from the Trump administration. Despite cautious overall risk sentiment, European indices extended their bullish streak, maintaining the momentum that has been building since the start of the year. The markets remain on track for an eighth consecutive week of gains, demonstrating resilience amid global uncertainties.

Dollar Stability During Closed US Markets

Meanwhile, the US dollar has remained relatively stable, with no significant market-moving catalysts in play. While global investors remain watchful, European markets continue to hold firm, indicating strong investor confidence despite lingering economic concerns.

ECB Rate Cut Speculation and Market Performance

European Central Bank (ECB) policymaker Robert Holzmann made remarks earlier, suggesting that a rate cut in March remains a possibility, though he acknowledged that further reductions will become increasingly difficult. His comments come as the ECB monitors inflation, which has declined from 4.4% to 2.9%, prompting the central bank to lower interest rates by 25 basis points on January 30.

Closing Levels for Major European Stock MarketsChart DE30m, D1, 2025.02.17 17:06 UTC, Exness Technologies Ltd, MetaTrader 5, Real

  • German DAX surged to a new all-time high, closing at 22,797.71 points, up +284.29 points (1.26%). The index continues its strong rally, reflecting investor confidence in Germany’s economic resilience.
  • France’s CAC 40 ended at 8,189.13 points, gaining +10.59 points (0.13%), marking its highest close since May 2024. The marginal gain suggests a more cautious sentiment despite an overall bullish trend.
  • UK’s FTSE 100 closed at 8,768.01 points, up +35.55 points (0.41%), indicating steady growth as investors assess economic stability and monetary policy outlooks.
  • Spain’s Ibex 35 reached 13,016.90 points, rising +60.90 points (0.47%), marking its highest closing level since June 2008. The index benefits from improved macroeconomic indicators and renewed foreign investment.
  • Italy’s FTSE MIB closed at 8,768.01 points, climbing +35.55 points (0.41%), achieving its highest level since December 2007, driven by strength in financial and industrial sectors.

European stock markets continue to show strong momentum, with several indices reaching multi-year or record highs. The DAX’s new peak underscores Germany’s economic leadership, gaining 1.26% and approaching the 23,000 level, while Spain and Italy’s indexes have reached levels unseen in over a decade, reflecting a broad-based recovery.

Although some markets, like France’s CAC, showed only modest gains, the overall trajectory remains bullish, signaling positive investor sentiment across the region. However, market participants remain watchful of economic data releases, central bank decisions, and geopolitical risks, which could influence future performance.

German Index Dax 40 Live Chart

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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