Germany: DAX 40 Holds Near July Lows Ahead of ECB Rate Decision.

Frankfurt’s DAX 40 index stabilized around 25,550 points on Thursday, hovering near its lowest level since late July, as the recent rally in oil prices paused and investors awaited the European Central Bank’s policy decision later in the day. Markets have fully priced in a 25-basis-point interest-rate hike, which would mark the ECB’s second increase this year and lift the key deposit rate to 2.50%. With the move largely anticipated, investors are instead focusing on the ECB’s updated economic forecasts and President Christine Lagarde’s press conference for further clues on the future path of monetary policy. Markets currently expect two rate hikes this year, with the deposit rate projected to reach around 3.1% by late 2027. Among individual stocks, RWE (+1.7%), Porsche AG (+1.0%), DHL (+0.8%) and MTU Aero Engines (+0.4%) gained following positive comments from US investment bank JPMorgan.