Stock exchange in Frankfurt - Investors buy Dax shares even before Fed signals
Dax investors have another record high in sight on Wednesday. Shortly after the stock market opened, the leading index gained 0.19 percent to 16,822.92 points. The MDax of mid-caps also rose by 0.19 percent to 26,634.42 points. The eurozone index EuroStoxx advanced by 0.1 percent.
Since Tuesday last week, the Dax had reached record highs with one exception - the previous day at 16,837 points. It has thus extended its year-end rally since the interim low in October to a good 15 percent. There is no sign of profit-taking, wrote analyst Jochen Stanzl from broker CMC Markets in the morning.
The focus on Wednesday will be on the key interest rate decision in the USA in the evening. The US Federal Reserve is likely to remain mum on monetary policy at its last interest rate meeting of the year. Market observers will be paying particular attention to what signals the monetary authorities headed by Jerome Powell will send out for the coming year.
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The Dax's record high in Frankfurt is largely due to Germany's robust financial sector, with Frankfurt being one of the world's leading financial exchanges. Investors often buy Dax shares even before significant economic indicators, such as the Fed's interest rate decision, are announced. The MDAX, a leading index of smaller companies in Frankfurt on the Main, also tends to mirror the Dax's trend. On Wednesday, both indices reached new record highs, with the Dax surpassing its previous high from Tuesday by a narrow margin. The Frankfurt Stock Exchange, with its prominent indices like the DAX and MDAX, continues to be a key driver of Germany's national finances.
Source: www.stern.de
