Hopes that interest rates in the USA will soon fall supported the German stock market on Thursday.

The Dax advanced by 0.3 percent to 18,426 points. "The German share index is surfing upwards on the wave of Wall Street," said analyst Jochen Stanzl from broker CMC Markets. The Nasdaq technology index and the broader S&P 500 reached new record highs after the latest economic data underpinned the assumption that the US economy is cooling. This makes an interest rate cut by the US Federal Reserve in September more likely in the view of stock market participants. However, there will be no impetus from Wall Street on Thursday, as the US stock markets are closed for the Independence Day holiday.

Continental was by far one of the biggest winners on the DAX in early trading, with a gain of almost ten percent. A report on the easing of pressure in the second half of the year drove up the share, which has lost almost 30 percent of its value since the beginning of the year. The automotive business is probably developing better than feared, commented one trader.

Redcare Pharmacy was in demand in the MDax. The shares gained 8.5 percent. The online pharmacy grew both in terms of turnover and customer numbers in the second quarter.

(Report by: Daniela Pegna, edited by Christian Götz. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).