The Dax continues its record course and rises to 16,004 points

The economic recovery and solid corporate profits make Europe's investors optimistic. The Dax continues its record course and rises 0.4 percent to 16,004 points. In the past few weeks there have been positive economic signals from numerous sectors and there have been increasing signs of a global economic recovery. Quarterly balance sheets of many companies have recently shown mostly increasing sales and profits, the number of unemployed in industrialized countries is falling again. There was also a tailwind from the US inflation data published on Wednesday. However, there are still supply bottlenecks for raw materials, a lack of supplies for computer chips and, last but not least, the spread of the delta variant of the corona virus. "With the new all-time highs, the mood on the floor has improved significantly," said portfolio manager Thomas Altmann from asset manager QC Partners. "We see new entries and increases in positions again." If the positive trend continues, according to market strategist Jochen Stanzl from trading house CMC Markets, there is a good chance of further highs above the magical 16,000 mark for the coming week. The upward trend on the stock exchanges is supported by the still very low level of interest rates and extensive bond purchases by the central banks. Although inflation rates have risen significantly recently in Europe and the USA, the central banks do not want to abandon their course of cheap money for the time being. Investor worries about an even stronger rise in US inflation had not been confirmed this week. Although US inflation remained high in July at 5.4 percent year-on-year, it did not accelerate. In Germany, the annual inflation rate in July was 3.8 percent. A persistently very high level of inflation in the USA could intensify speculation that the US Federal Reserve would exit its extremely loose monetary policy. This can have a detrimental effect on the stock market because other asset classes then become more attractive again.