Lufthansa pushes DAX to a record high
Germany's stocks benchmark index DAX rose above 13,000 points for the first time in its 30-year history yesterday, as relatively attractive valuations and optimism about global economic growth continued to lure investors.
The export-oriented index, the biggest in the Eurozone with a market value of €1.2trn, rose as much as 0.2pc to 13,002 points before ending up 0.1pc, while the broader pan-European STOXX 600 index was flat.
The DAX is up 13pc so far this year and is on course to end its sixth straight year of gains, as equities in the region found support in years of expansionary monetary policies and signs of continued strength in corporate earnings.
Yesterday it got an extra lift as the euro pulled back and worries eased over a big political crisis in Spain after a controversial independence referendum in the wealthy region of Catalonia.
"Favourable market conditions, relief on the back of a reduced threat of Catalonian secession and record low interest rates and QE combined has helped lift the DAX to a new record level," FOREX.com analyst Fawad Razaqzada said.
"The DAX's rally could accelerate in the event the euro eases back from current levels, as this would boost the appeal of German exporters," he said.
The biggest gainer yesterday on the DAX was Lufthansa, which ended up 2.3pc after it reinforced its position as Germany's largest airline by signing a €210m deal for parts of insolvent Air Berlin.
In Ireland the Iseq was up slightly at 6820.31, well below even this year's high.
Britain's top FTSE share index ended at a record close, up 0.3pc, after a fresh fall in the sterling after EU negotiator Michel Barnier said Brexit talks were in deadlock.