Germany’s DAX index surged by nearly 0.5%, moving closer to an all-time high as investors await Fed Chair Kevin Warsh’s first major address at the Jackson Hole symposium.

The German DAX index opened trading with strong gains on Friday, climbing 0.5% to 26,493 points, as optimism builds ahead of Federal Reserve Chair Kevin Warsh’s anticipated speech in Jackson Hole. Analysts suggest the index is now just a fraction away from reaching a new record high, fueled by positive market momentum from the previous trading session.

Investors are closely watching Warsh’s address at 4:00 PM CET, his first significant appearance at the annual central bank conference. Market participants hope to glean insights into how the Fed plans to combat persistent inflation hovering well above the 2% target and manage elevated long-term bond yields. Speculation about potential future interest rate hikes has heightened, adding pressure on the Fed chief to balance clarity and market stability in his remarks.

Meanwhile, Germany’s chemical industry is showing signs of recovery, marking its first optimistic outlook in four years. The Ifo Institute’s business climate index for the sector rose dramatically in August, driven by increased global demand due to supply disruptions in Asia. However, challenges such as high energy costs and expensive production locations remain significant hurdles. In a separate development, import prices in July increased by 6.8% year-over-year due to rising energy costs, while the consumer impact of this trend is yet to be fully seen.