In brief

• Germany's DAX rose above 27,000 points for the first time on 12 November, reaching a record high of 27,001.67 points in the morning session.
• Falling oil prices and better-than-expected corporate results supported the rally, while technology shares weakened on unverified reports about Nvidia's leadership.
• Analysts see possible support for a year-end rally, though investor enthusiasm for AI is fading.

DAX breaks through the 27,000 mark

The DAX climbed as high as 27,001.67 points in the morning session on Thursday, 12 November, a new all-time high for Germany's benchmark index. The gain was 1.3 percent at the peak. The index has added more than 1,300 points in a single week (Neuer Rekord – Dax knackt erstmals Marke von 27.000 Punkten – DER SPIEGEL).

Oil and corporate results drive the rally

Lower oil prices were the main support. Andreas Lipkow of broker CMC Markets said cheaper energy would ease costs for companies, support household spending and reduce fears of a fresh inflation jump. Hopes for a peace deal between the United States and Iran, which would likely push oil lower still, also drew investors back into the market (DAX auf Rekordhoch - Anleger vertrauen deutscher Wachstumsstory – tagesschau.de). Earlier in the week, utilities RWE and E.On said they were on track to meet their annual targets, having posted higher profits over the first nine months of the year (Marktbericht: Der DAX-Rally geht die Puste aus – tagesschau.de).

Artificial intelligence stocks under pressure

Fears that the AI boom could end abruptly had eased, after they flared up following the Democrats' strong showing in the US congressional midterm elections. Democrats generally favour more regulation of artificial intelligence than President Donald Trump, which could affect the building of data centres. Technology shares nevertheless weakened in the afternoon. Media reports, including one cited by Der Spiegel that referred to a New York Times report, said Nvidia's board was meeting over a possible replacement for chief executive Jensen Huang, following an alleged affair with a suspected Chinese spy. Nvidia has not officially confirmed these reports, and the claims remain unverified.

Analysts see room for a year-end rally

Some analysts think the combination of peace hopes and solid German company prospects could support a year-end rally. Jochen Stanzl of Consorsbank has warned that investor enthusiasm for AI is fading, with buyers now wanting proof of results rather than promises (Marktbericht: DAX nähert sich wieder dem Rekordhoch – tagesschau.de).

Key levels

The DAX stood at 26,267 points at the close on Monday, 10 November. The previous record, set the week before, was 26,692 points. Nvidia's quarterly results, due the following week, are seen as the next major test for the technology sector (Marktbericht: DAX-Rekord bleibt in Sichtweite – tagesschau.de).

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