US, German Stock Markets Soar Despite Shutdown; Siemens Energy Shares Surge
Stock markets in the US and Germany have shown remarkable strength, with the Dax nearing its record high and US markets setting new records. This comes despite a partial US government shutdown. Key drivers include expectations of US monetary policy and positive analyst sentiments towards several companies.
Berenberg and Goldman Sachs have raised their price targets for Siemens Energy shares, reflecting their view that the stock is undervalued. Meanwhile, Siemens shares have risen sharply, closing at around €241.20, nearing their 2025 high. However, the Erste Group recently downgraded Siemens from 'buy' to 'hold' due to margin concerns in some divisions. Siemens Energy, trading around €106.30, is seen as a pure-play energy technology company.
Analyst Frank Sohlleder attributes the current market strength to expectations of a US Federal Reserve rate cut at the end of October, with a 99% probability. US stock markets have reached new highs, with the S&P 500 and the Nasdaq 100 leading the way. In Germany, the Dax rose by 1.3% to 24,423 points on Thursday.
Shares of several companies have responded positively to analyst upgrades. Formycon's stock showed a strong recovery with a gain of over 10% in the SDax after a breakthrough for its drug FYB203 in the US. Rational's shares rose over 6% in the MDax following an upgrade by Barclays. Hochtief's shares also rose over 6% in the MDax after a buy recommendation from analysts at the Bank of America.
The German benchmark index (Dax) is nearing its record high, while US markets have set new records. This is driven by expectations of US monetary policy and positive analyst sentiments towards several companies. However, a dramatic sell-off could occur if the Fed fails to meet high market expectations.
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