The Commission has yet to determine if the aid aligns with the rules of the internal market.
Market Sentiment Remains Positive as Fed Rate Cut Expectations Grow
A wave of cautious optimism is sweeping through global markets, fueled by growing hopes for an imminent interest rate cut by the Federal Reserve in the United States. According to CME FedWatch data, probabilities for a rate cut in September 2025 stand at 92.7%–93.4%, a reflection of the current market sentiment.
This anticipation stems from signs of slowing U.S. economic growth, weak hiring figures, and inflation concerns, which have pushed Treasury yields lower and fueled hopes for easing monetary policy. This expectation has boosted U.S. stocks, with the S&P 500 rising 0.78% on August 8, 2025, due to strong performances in tech, healthcare, and financial sectors. However, there's some debate, with major banks like Morgan Stanley suggesting the Fed may hold rates steady depending on upcoming economic data.
The positive sentiment in the U.S. markets is also broadly supportive of European indices such as the DAX and MDAX. While there's no explicit recent data on their moves, the general trend in 2025 shows global markets responding positively to Fed rate cut prospects despite some tariff and inflation worries. The DAX, for instance, recovered from a 1.4% decrease on Monday, rising by 0.37% on Tuesday, reaching 23,846 points. The MDAX also increased, adding 0.89 percent to 30,825 points.
Infineon, a semiconductor company, became the day's top gainer in the DAX, with its stock surging 4.6 percent. Infineon expressed renewed optimism for the current fiscal year, citing improved market conditions. Continental, an auto supplier, also saw its stock rise 0.4 percent, thanks to its cost-cutting efforts in the tire segment.
Fraport's stock also increased 5.3 percent due to impressive results, while Gerresheimer's shares made a strong comeback, gaining nearly five percent on news of the planned sale of its container glass business. However, Fresenius Medical Care's stock lost 1.8 percent due to stagnant patient numbers and a weak US dollar.
Commerzbank's stock had rallied strongly in the past three months before losing six percent ahead of the bank's upcoming quarterly report on Wednesday. Aurubis' stock rose 5.3 percent in the MDAX following a strong third quarter.
IG analyst Christian Henke observed a shift in tone, stating that resistance within the Fed to a rate cut is crumbling. Lower interest rates make stocks more attractive than bonds, which supports prices. Despite the ongoing geopolitical and inflation risks, the strong market consensus on a near-term Fed rate cut is underpinning gains in U.S. equities and is broadly supportive of European indices such as the DAX and MDAX.
Technology and finance sectors, propelled by the positive market sentiment, have seen strong performances in recent times. The DAX, for instance, was boosted by Infineon, a semiconductor company, whose stock surged 4.6 percent as the company expressed renewed optimism for the current fiscal year. Similarly, lower interest rates, driven by the anticipation of a Fed rate cut, have made stocks more attractive than bonds, thereby contributing to the rise in European indices like the DAX and MDAX.
