No doubt this brand new year will be a tough year for the global financial market. Major political and economic uncertainties are swarming the market, with the Brexit process, political turmoil in France and Italy and the upcoming trade policies of US President Donald Trump as main movers of the already-shook international transactions. But for Germany 30, the DAX, 2017 will be a thirstier, sturdier quest.
On a Roll
Germany 30 has had a strong fourth quarter last year, thanks to the ferocious rally from the US equities driven by the fiscal and monetary policies of the country. The DAX was one of the recipients of this generosity from the surge on Wall Street stocks.
Prior to the start of 2017, the German bourse pulled off strong start and looked to be hungrier for more gains. Backed up by the current political scandal in France, investors are jumping to Germany 30 for a safer investment, pushing the stocks to reach above the 11900-mark in January.
Another driver of this bullish performance from DAX was the robust PMI of the country. The private sector in Germany hit its highest level in three years this week after it rose to 56.1 in February from 54.8 last month, suggesting that the country’s economy is likely to expand in the first three months of the year.
With this upbeat news on the economy, Germany 30 index reached another milestone yesterday as it hovered above the symbolic 12000-level, a feat last achieved by the index two years ago, as it jumped 0.5% to close at 12 026 on Wednesday trading.
Analysts believed that the benchmark will continue booming in the first half of 2016 as it just started coming back to life after a congested year in 2016 and see the index to touch 12400-level as the European central Bank pushing for robust quantitative easing could be a huge lift for the DAX.