Stocks – DAX Hits New Record High as Virus Fears Fade in China
Germany’s DAX index posted a record high shortly after the start of trading Wednesday, helped by the improved sentiment emerging from Asia regarding the new pneumonia-like virus in China.
At 03:30 AM ET (0830 GMT), the benchmark index traded 0.5% higher at 13,627.38, just off the new high of 13,637.60. This breached the record close that was put in place in January 2018.
The German economy is one of the most open in the world and its companies are thus very exposed to global trade issues. The lessening of concern over the virus in Asia, along with the recent improvement in U.S.-China relations resulting in this month’s trade deal, have put a spring back into their step.
Additionally, the German ZEW economic sentiment index Tuesday hit its highest in four and a half years, while the Deutsche Bundesbank wrote in its most recent monthly report that manufacturing output may bottom out early this year.