German Stock Market Index Reaches New High, Defying US Market Volatility
The German stock market index, Dax, closed at a new high on the start of the week, with a 0.7 percent increase, or 169 points, from the previous trading day. The index closed at 23,934 points, as of the Xetra closing prices.
Despite the poor pre-market indicators from the US, market analyst Andreas Lipkow believes the Dax has ignored the negative signals. “The current US trading dynamics will be a significant indicator of the general market condition, particularly the flow of money, which will impact the stock markets” he said.
Lipkow also noted that the currency market has already reacted to the US credit rating downgrade, with the US dollar weakening against other G7 currencies.
The trading activity in the German market is generally calm, with low trading volumes and the recent upward trend is fragile, according to Lipkow. The lack of significant market-moving events on the day’s agenda may contribute to the market’s cautious sentiment.
The euro, the European common currency, was stronger against the US dollar on Monday afternoon, with one euro equivalent to 1.1255 US dollars and one dollar worth 0.8885 euros.