Monday 28 December 2020
Update
New record high
Brexit trade deal and US aid are driving Dax
Investors are driving the German stock market to new heights shortly before the end of the year. The reason is the prospect of overcoming the economic weakness. The optimism is fed mainly from three sources.
The hope of a global economic recovery in the coming year dominates the German stock market. This is largely supported by the agreement on an EU-UK trade agreement, which will likely prevent a no-deal Brexit, the signing of a new US economic stimulus package by President Donald Trump and the start of corona vaccinations in the EU.
Great Britain and the EU had agreed on a free trade agreement on Christmas Eve. "The agreement is good and is fair to both sides," said Thomas Gitzel, chief economist at VP Bank. "It is crucial that the agreement leaves room for future governments to intensify the trade relationship."
And so the exchange trading in Frankfurt opens very friendly: With the starting bell, the stock market barometer goes up sharply. In early trading, the pulls Dax by 1.6 percent to 13,807 points. The leading index thus marks a new record high shortly before the end of the year. The MDax gains 1.0 percent to 30,708 positions. The TecDax increases by 1.1 percent to 3219 counters.
The fact that the Dax, burdened by the Corona crisis, fell within a few weeks from the previous high by more than 40 percent to 8255 points in March – apparently forgotten. Investors are now counting on a strong economic upswing. In addition, the central bank billions continue to flow around the globe – money that has to be invested somewhere.
In the Dax, all 30 values are positive. It goes most clearly for Delivery Hero up. The food delivery company without a German business is 4.4 percent more expensive. Deutsche Bank gain 2.7 percent. The post Office increases in price by 2.1 percent. Here CEO Frank Appel had promised new record volumes of parcels transported this year. The two apartment titles recorded the lowest surcharges Vonovia and German living.
Sort yourself in the second row Lufthansa and Fraport two companies particularly hit by the corona crisis among the winners. Here the prospect of an upturn in tourism attracts investors. For both, it is more than four percent in the amount.
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