Dax closes well thanks to falling US inflation

Dusseldorf The significant drop in US inflation is causing the German stock market to jump for joy. The Dax is trading at 13,700 points, up 1.2 percent. In the afternoon, the price rose by more than 100 points within a few minutes. On Tuesday, the leading index had given way one percent and closed at 13,534 points.

The reason for the price increase is that US inflation slowed more than expected in July. This reduces the pressure on the US Federal Reserve to continue aggressively raising interest rates. If the Fed can hike more slowly and by less, that’s good news for the bond market, for the stock market, and for the US economy.

The consumer price index rose 8.5 percent from the same month last year after rising 9.1 percent last month and hitting a 40-year high. Experts had expected an increase of 8.7 percent.

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