In brief

• The German DAX hit a record intraday high of 26,644.33 points, above its August peak of 26,628.74 points.
• The rally followed the Democratic win in the US midterm elections, which reduced political uncertainty for markets.
• Hopes of a partial easing of Middle East tensions, falling oil prices and rising German industrial orders also supported stocks.

Index passes August peak

The German DAX rose to a record intraday level on Thursday morning, trading at 26,644.33 points. That was above the high reached in August, when the index touched 26,628.74 points. Earlier in the session it had already climbed to about 26,626 points, according to Business Insider Polska (Niemiecka giełda bije kolejny rekord. Pomogły wybory w USA – Business Insider Polska), and Deutschlandfunk reported a morning peak of more than 26,500 points (Wirtschaft - Dax steigt auf Rekordhoch – Deutschlandfunk).

US midterms drive sentiment

The main driver was the outcome of Tuesday's US midterm elections, in which the Democrats won clear majorities in the House of Representatives and the Senate (Dax springt auf Rekordhoch – DER SPIEGEL). Analysts said the result removes a major source of uncertainty. Jochen Stanzl of Consorsbank said the outcome was quickly settled, clearly accepted by President Donald Trump, and that divided political power reduces the risk of surprises. Experts also pointed to a limited shift in US policy: the Democrats cannot easily reverse Trump's agenda but can slow it down.

The Dow Jones Industrial Average had already moved higher on Wednesday after the vote.

Oil, Middle East and industry

Investors also priced in a partial easing of tensions in the Middle East, which would ease pressure on oil prices and inflation worries. Falling oil prices added support to the market.

Orders to German industry rose in September, which also improved investor sentiment.

Why the DAX benefits

Most companies listed in the DAX earn the bulk of their sales and profits abroad. They depend less on the domestic economy than many smaller German firms, so global signals such as US politics and oil prices weigh heavily on their share prices.