The German stock market benchmark, the DAX, continued its upward trajectory on Wednesday, building upon a positive start to the trading day. By midday, the index reached approximately 24,445 points, representing a gain of 1.0 percent compared to the previous day’s closing level. During the session, a new record high of 24,480 points was briefly achieved.
Leading the gains were Siemens, BASF and Deutsche Bank, while Porsche, FMC and Commerzbank ultimately topped the list at the end of the trading session.
According to market expert Andreas Lipkow, investors are demonstrating selective buying of German blue-chip stocks, driven by expectations of a near-term economic recovery within Germany. “The expectation is that new debt will stimulate the economy and translate into increased corporate profits” Lipkow stated. This selective investment approach is contributing to a narrowing market breadth within the DAX 40, meaning that a smaller number of companies are contributing the overall index’s recent gains.
The Euro weakened slightly against the US dollar, trading at $1.1714, with the dollar fetching €0.8537.
Meanwhile, crude oil prices saw an increase, with a barrel of Brent North Sea crude costing $70.33 around noon local time – an increase of 18 cents, or 0.3 percent, compared to the previous trading day’s close.