Frankfurt gains 2.16% to close at record high on falling crude, reforms, and US jobs data

The Frankfurt Stock Exchange hit a historic high on Thursday, with the DAX 40 index surging 2.16% to close at 25,580.88 points. This marks the first time the index has reached a new record since January, fueled by a confluence of positive economic indicators and government initiatives.

The decline in oil prices, with Brent crude falling to $70.20 per barrel, its lowest point since late February, played a significant role. Hopes for a U.S.-Iran agreement to end the Middle East conflict, following positive signals from mediators Qatar and Pakistan regarding indirect negotiations, contributed to the drop. Additionally, U.S. employment figures showed a slower-than-expected increase in non-farm payrolls for June, with only 57,000 new jobs added. The unemployment rate also edged down to 4.2%, suggesting the Federal Reserve may hold off on raising interest rates.

Further bolstering the market were reforms approved by the German government aimed at stimulating the economy and enhancing competitiveness. These measures include reducing bureaucracy and taxes for low and middle-income earners, as well as reforming the labor market to make Germany a more attractive destination for investment and job creation. A study by the Ifo Institute indicated that 70% of Germany's social spending is allocated to pensions and healthcare. The government also plans to prohibit the state expropriation of rental apartments, which could benefit the real estate sector.

Among individual stocks, Bayer experienced a significant boost, rising 8.9% after establishing an independent company for its glyphosate business in the U.S. Real estate firm Vonovia gained 6%, and Deutsche Bank added 5.3%. Only three stocks declined: Infineon (-2%), Hochtief (-1.9%), and Scout24 (-0.4%).