DAX Struggles For Direction As Rate Cut Hopes Fade

German stocks were little changed on Thursday as U.S. rate uncertainty persisted and Israel vowed to press ahead with military offensive in Gaza until achieving “absolute victory.”

The benchmark DAX was marginally lower at 16,907 after falling around 0.7 percent the previous day.

The euro rose against a basket of major rivals, extending gains for a third straight session against the dollar after several ECB officials warned central banks need to move carefully on cutting interest rates this year.

ECB member Isabel Schnabel said in an interview with the Financial Times that recent data and market bets on quick rate cuts mean the central bank needs to be patient before easing policies.

In corporate news, Siemens declined 1.6 percent after two of its largest investors called for the German engineering group to simplify its operations. Meanwhile, the company’s Q1 net profit beat expectations.

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