Hopes of a sustained reduction in inflationary pressure in the United States and a slower rate of interest rate hikes by the US Federal Reserve boosted the German stock market on Thursday.

From a company perspective, the focus was also on the last "hot day" of the reporting season with many quarterly figures from companies in the Dax family.

In the first few minutes of Xetra trading, the Dax rose by 0.3 percent to 13,736 points.

The most important German stock market barometer thus surpassed the 100-day line of 13,719 points, which is considered an indicator of the medium-term trend.

The Dax is now approaching its high since mid-June at 13,792 points from the previous week.

The M-Dax of medium-sized companies gained 0.4 percent on Thursday morning to 27,934 points.

The leading eurozone index, the Euro Stoxx 50, rose by around 0.5 percent.

The biggest winners in the Dax in the morning included Eon with a plus of 2 percent and MTU Aero Engines with a premium of 1.5 percent.

The most significant price losses, in turn, were recorded by RWE with a drop of 2.9 percent at times and Siemens with a price reduction of 2 percent, followed by Vonovia with minus 1.6 percent.

In the US, a slower rise in inflation than the previous month drove investors in droves back to the stock market on Wednesday.

The Dow Jones index rose 1.6 percent to 33,309 points.

The broader S&P 500 rose 2.1 percent to 4210 points.

The technology-heavy Nasdaq index, which has recently come under particular pressure, rose by 2.9 percent to 12,855 points.

For Nasdaq and S&P it was the biggest daily gain in two weeks, for the Dow Jones even in three weeks.

Less concern about large rate hikes

Investors' fears of another XXL rate hike by the American central bank subsided significantly.

Unusually large rate hikes by the Fed had recently weighed on the stock exchanges and fueled fears of a recession.

"Inflation is still very high at 8.5 percent, but there is confidence that June may have been the peak," said Charles Schwab's vice president of trading and derivatives, Randy Frederick.

However, he warned that July producer price data and August inflation and employment data are due next Thursday before the next Fed meeting.

Only then will the central bank set its course.

"The signs of slowing inflation give hope that the Federal Reserve's rate hikes may not have to go as far as previously thought," said Mike Owens, trader at Saxo Markets.

The bets on a third interest rate hike by the US Federal Reserve by 0.75 percent in September ebbed significantly.

Investors are now increasingly expecting a more moderate step of 0.5 percent.

The rate of inflation fell to 8.5 percent in July and was therefore stronger than experts had previously expected.

In June, US inflation was 9.1 percent, the highest in more than 40 years.

However, economists warned that the specter of inflation has not yet been banished.

According to the experts at Commerzbank, one can breathe a sigh of relief after today's data.

"But the inflation problem is likely to prove very persistent."

Tesla was in the spotlight when it came to individual values ​​after CEO Elon Musk sold shares in the electric car manufacturer for almost seven billion dollars.

According to Musk, the money will be used to take over Twitter if he loses the legal battle with which the short message service still wants to force the $44 billion takeover.

Preparing a "war chest" for the Twitter acquisition protects against the need for a flash sale later, said Matt Britzman, an analyst at Hargreaves Lansdown.

Tesla shares gained 3.9 percent;

the papers of Twitter attracted 3.7 percent.

Facebook parent Meta rose 5.8 percent after the group announced it had raised $10 billion in its first bond issue.

In general, things have been going well for big tech companies.

Apple, Alphabet, Amazon and Microsoft all rose more than 2 percent.