The Dax continued to rise on Friday, following a positive start to the trading day, until lunchtime. By around 12:30, the leading index had been calculated at around 20,490 points, 0.3% higher than the previous day’s closing level.
Insurance company Munich Re was particularly popular at the end of the week, as it expects a further increase in profits in the coming year.
“Market participants are betting on a continuation of the already-launched year-end rally” said market analyst Andreas Lipkow. “The sentiment remains unbrokenly positive for the large index companies. The more international the companies are, the more interest they generate among investors.”
“The German real economy remains sluggish, and it’s not until the economy in China recovers sustainably that new momentum can be expected in the global economy” Lipkow said. “However, the Dax no longer has a lot of room for growth. The recent rally has already absorbed a lot of optimism and hopes, and the largest Dax companies are no longer undervalued in international comparison” he added.
The European common currency was a bit stronger on Friday afternoon: one euro cost $1.0490, and one dollar was worth $0.9533 euros.