German stocks continued their upward trend on Thursday, with the Dax index reaching a new high by midday. By 12:30, the benchmark had risen 0.4 percent to around 24,375 points, surpassing the previous day’s close. Bayer, the pharmaceutical giant, led the pack, its stock boosted by a buy recommendation from Goldman Sachs.
According to Andreas Lipkow, a market analyst, the pessimism surrounding European stock markets has largely dissipated, as evident in the Dax’s new record high. He believes the index may reach a level of around 24,400 points during the trading day, driven by sporadic buying in stocks such as Bayer, Heidelberg Materials, Daimler Truck and Fresenius.
Despite the positive momentum, investors are still awaiting the European Central Bank’s interest rate decision and are exercising caution. Lipkow notes that the potential for further gains in the Dax is becoming increasingly limited and it would require a significant amount of imagination to justify the current risk-reward ratio in the index.
Meanwhile, the euro was slightly stronger against the US dollar, with one euro exchanging for approximately 1.1425 US dollars and one dollar fetching 0.8753 euros.