FRANKFURT (dpa-AFX) - The DAX continued its recovery rally on Thursday with tailwinds from New York. Early losses turned into gains - investors on both sides of the Atlantic reacted encouragingly to the third interest rate cut by the US Federal Reserve this year. This had brought the US benchmark index, the Dow Jones Industrial, to a record high. Price losses in the US technology sector had little impact here.
The DAX closed 0.68 percent higher at 24,294.61 points. It reached its highest level in over a month after approaching the psychologically important 24,000-point mark in early trading. The MDAX, which tracks medium-sized German stocks, also closed 0.63 percent higher at 29,920.08 points.
As expected, the US Federal Reserve lowered its key interest rate by 0.25 percentage points the evening before, even though the inflation rate is above its target. According to DZ Bank, Fed Chairman Jerome Powell justified this move by citing risks of misjudging the labor market. The markets also welcomed the Fed's willingness to buy short-term government bonds to counteract tensions in the money market. /tih/jha/
