Germany30 [DAX] rose to an all-time high at 12,001 as dollar slows on weak U.S data.
Subsiding fears over the Greece issue have also strengthened equities in Europe alongside the bond-buying scheme recently put into play by the European Central Bank. As lending becomes more accessible through government bonds, so European companies can progress with plans, and investors as a result, are taking more interest in stocks. With the euro at near-parity with the USD, Germany’s major exporters are feeling the benefits of the earnings tailwind.
Alongside positive German data of GDP growth and retail sales, consumer and investor confidence is gaining ground. The German index is one of a few European indices that factor in returns from dividends, and as bond yields fall due to the ECB QE programme flooding the market, investors are turning to stocks for purchase and trading.
In Germany, the main index has risen 22% already in 2015, with 0.8% made in early Monday trading.
Other indices around the global markets have supported the European equities. China’s loosening of monetary policy is allowing Chinese companies to borrow more, whilst last week’s dive across most U.S stocks has reversed at support levels and are all on an upward progression at Monday morning’s after-hours trading.
MT4 Chart: Germany30 [DAX] – European equities gain strength from ECB QE programme
MT4 Chart: USA30 [DOW] – Last week’s poor US data pushed U.S stocks down but Monday sees reversal
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