The Dax index continued its friendly start on Wednesday, surging further until midday. By around 12:30 pm, the index was calculated at around 21,605 points, a 0.8 percent increase from the previous trading day. Daimler Truck’s shares led the pack, while Qiagen’s shares trailed at the end.
“European investors are back in a record-high mood and are pushing the Dax to a new record high of 21,601 points at the mid-week mark” explained market analyst Andreas Lipkow. “Investors are once again seeking out cyclical sectors, particularly those in the automotive and machinery industries. They are betting on a swift economic upswing and are taking the positive trade expectations from the US into account.”
Currently, European stocks are seen as undervalued in an international comparison, according to Lipkow. “That’s why many investors are focusing on the seemingly undervalued sectors: chemistry, autos and machinery in Europe. This at least helps the Dax 40 to reach new record highs, as index heavyweights like SAP and Airbus continue to carry the overall market.”
The European single currency was weaker on Wednesday afternoon: one euro was worth 1.0406 US dollars and one dollar was worth 0.9610 euros.
Oil prices also fell: a barrel of the North Sea’s Brent crude cost around 76.78 US dollars at midday German time on Wednesday, a 71-cent or 0.9 percent decrease from the close of the previous trading day.