Frankfurt′s DAX heads into Christmas on a record high | News | DW | 23.12.2013
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Frankfurt's DAX heads into Christmas on a record high

Germany’s leading DAX index is heading into the Christmas holiday after closing trading at a new record high. Analysts do not expect the rally to end anytime soon.

The DAX-30 index reached a new all-time high of 9488.82 points as trading closed at the Frankfurt Stock Exchange on Monday.

Analysts pointed to renewed hopes of an improvement in the state of the US economy, the world's largest, as a major factor in the rally in Frankfurt as well as at other markets.

Figures released by the US Commerce Department on Friday showed that the American economy grew by 4.1 percent in the third quarter of 2013, compared to the 3.6 percent, which had been predicted.

This was followed by an announcement by the managing director of the International Monetary Fund, Christine Lagard, who said the Washington-based institution would raise its growth prediction for the US economy.

"Growth is picking up," Lagarde told US broadcaster NBC. "And unemployment is going down. So all of that gives us a much stronger outlook for 2014, which brings us to raising our [U.S.] forecast."

Domestic drivers

Analysts also pointed to good news from a few German companies as helping drive the DAX to a 0.9 percent gain on the day.

Tech and engineering giant Siemens announced that it had delivered the first of 16 high-speed ICE passenger trains to the German rail operator Deutsche Bahn on Monday - albeit more than two years after it had originally been due.

Sporting goods manufacturer Adidas, meanwhile, announced that it was on target to achieve a new earnings record in 2013. It also announced plans for a major expansion of its activities in China over the next two years.

German chemicals company Lanxess, meanwhile, posted in the biggest gain in Monday's trading, after predicting rising profits for 2014, following a difficult 2013.

Analysts also said there was no reason to expect the DAX's rally to end anytime soon.

"There are still many reasons why the DAX may climb to new highs," NordLB economist Tobias Basse told Reuters news agency. "We expect the index to clear the 10,000-point hurdle within the next six months," he added.

pfd/kms (AP, Reuters, dpa)

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