DAX closes above 26,000 despite Volkswagen’s €5.8 billion loss

Germany’s DAX rose 1.31% to close at 26,039 points, moving back above 26,000 for the first time in the recent rebound.

The index gained for a fourth straight trading day, while the mid-cap MDAX also rose.

Investors welcomed the European Central Bank and US Federal Reserve holding rates steady for now, despite inflation remaining above their 2% target.

However, the article said rate increases could return by the end of the year if inflation does not ease, with high energy prices a concern.

Volkswagen reported a €5.8 billion loss for the third quarter, largely reflecting a write-down linked to its Porsche subsidiary.

The loss did not prevent the DAX from rising, while Adidas shares led the index and Vonovia shares fell to their lowest level in more than a decade.

The central banks will watch how prices and economic activity develop, and the article said further rate increases remain possible.