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Stock exchange: Brexit deal and US economic stimulus package push Dax to record high

2020-12-28T11:31:59.459Z

The corona crisis has had a major impact on the stock exchanges. First the share prices in Frankfurt crashed. Now they are picking themselves up to new heights.



The corona crisis has had a major impact on the stock exchanges.

First the share prices in Frankfurt crashed.

Now they are picking themselves up to new heights.

Frankfurt / Main - The

Corona crisis

has also had a

significant impact

on the

stock exchanges

.

First the share prices in Frankfurt crashed spectacularly.

Now they are picking themselves up again to new heights.

There are several reasons for this.

Record high for the German benchmark index: The

Dax

made the last jump over the previous record of February

on the Monday after Christmas thanks to the

Brexit deal

and the

US economic stimulus package

.

In addition, the Dax has long been supported by the vaccine issue and the

corona aid packages

from governments and central banks.

The record now stands at 13,818 points.

The corona crisis, which

pushed

the

German benchmark index

down to 8255 points in March, seems to be over.

Still high


corona numbers and lockdowns or not, investors are counting on a strong economic upturn and let the

Dax

rise above the 13,800 point mark for the first time.

Most recently, the leading index was up 1.60 percent at 13,804.08 points.

Dax is recovering: slump during corona pandemic - China as the driving force

In February, the

corona pandemic

quickly turned

the mood at the

stock exchange

into panic: from the 13,795 points reached at the time, it had fallen by 40 percent within weeks.

Only massive injections of money from central banks and governments for the

economy, which was starving

under

lockdowns,

brought the turning point.

With the end of most of the lockdowns in the summer, the economy picked up again in many places.

The main driving force here is the recovery in

China

, the country where the corona virus first appeared.

Deutsche Bank

analysts

see reason to be happy.

The vaccine news of the past few weeks was an unprecedented victory for science.

Foreign exchange strategists Robin Winkler and George Saravelos recently said that this would lead to a much faster normalization of daily life than was assumed not so long ago.

They now assume that the particularly endangered proportion of the population in industrialized countries can be immunized by spring and the entire population by mid-2021.

The #Dax is at a record high this morning!

13,795 in high today!

#alltimehigh # Börse #Shares # COVID19 #Frankfurt pic.twitter.com/j6UUfEeFvZ

- Marc Richter (@boersenmakler) December 28, 2020

Until people's everyday lives and economic life have normalized, investors will continue to rely on the help of politics.

The fact that the still incumbent US President

Donald Trump

has finally implemented the

corona economic stimulus package

of around 900 billion US dollars (around 740 billion euros)

decided by Congress with a bipartisan majority

started the last one on the financial markets Trading week of the year is also good.

This also applies to the

Brexit trade pact

between Great Britain and the EU, which was

fixed shortly before the end of the month

.

Commerzbank: Warning voices with reference to corona infection numbers

But there are also warning voices.

Even in the Christmas week, the situation in Germany did not relax, say the experts at

Commerzbank

.

The decline in reported new infections is solely due to the reduced scope of testing.

The number of corona patients receiving intensive medical treatment in German hospitals has continued to rise.

In addition, chart experts urge caution in view of the only narrow jump of the

Dax

above its old record high.

Usually, an increase to a new high clears the way for further gains.

At the moment, however, it could also be a so-called "false signal", especially since trading volumes are low between the years, said a stockbroker.

Sustained upward outbreaks were often accompanied by high sales - a sign that many investors are getting on board and thus a measure of their confidence in the increase.

How sustainable the current development is will therefore only really become apparent in the new year.

(dpa)

Source: merkur

All news articles on 2020-12-28

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