Frankfurt’s DAX30 aims to break records as it approaches the 10,000 point level with main European stocks closing at higher rates on Tuesday.
DAX30 closed with a 0.49% increase to 9,940.82. It is the first time for the index to surge beyond 9,900, even going as far as 9,951.90 during the intraday session.
Analyst of CMC Markets UK, Michael Hewson says, “The German DAX continues to push ever closer to the psychological barrier that is the 10,000 level as it continues to post record highs, while the rest of Europe consolidates its gains”
Post-holiday London’s FTSE 100 index gained 0.49% to close at 6,844.94. Paris’ CAC40 increased by 0.06% to finish at 4,529.75.
Hewson also points out that FTSE 100 was also near its 14-year high. “It’s becoming hard to imagine what the catalyst would be for a sharp downward move in equity markets, given how markets continue to go from strength to strength,” he said.
European Central Bank President Mario Draghi may have hinted an ease on monetary policies on the upcoming June 5 meeting causing the euro to fall against the dollar in an effort to battle low inflation and keep prices at bay.
The euro fell further, from $1.3634 to $1.3621, following the European Parliamentary elections amidst it’s 3-moth struggle to strike back. Meanwhile, the British pound slips from $1.6843 to $1.6803.
Draghi’s speech in Portugal on Tuesday indicating that there is a risk of extended period in low inflation in the eurozone. Deflation might be a possibility if it continues. This indication alerted the market on possible monetary policy ease to avoid further slipping to inflation.
The material has been provided by InstaForex Company – www.instaforex.com
Frankfurt’s DAX30 aims to break records as it approaches the 10,000 point level with main European stocks closing at higher rates on Tuesday.
DAX30 closed with a 0.49% increase to 9,940.82. It is the first time for the index to surge beyond 9,900, even going as far as 9,951.90 during the intraday session.
Analyst of CMC Markets UK, Michael Hewson says, “The German DAX continues to push ever closer to the psychological barrier that is the 10,000 level as it continues to post record highs, while the rest of Europe consolidates its gains”
Post-holiday London’s FTSE 100 index gained 0.49% to close at 6,844.94. Paris’ CAC40 increased by 0.06% to finish at 4,529.75.
Hewson also points out that FTSE 100 was also near its 14-year high. “It’s becoming hard to imagine what the catalyst would be for a sharp downward move in equity markets, given how markets continue to go from strength to strength,” he said.
European Central Bank President Mario Draghi may have hinted an ease on monetary policies on the upcoming June 5 meeting causing the euro to fall against the dollar in an effort to battle low inflation and keep prices at bay.
The euro fell further, from $1.3634 to $1.3621, following the European Parliamentary elections amidst it’s 3-moth struggle to strike back. Meanwhile, the British pound slips from $1.6843 to $1.6803.
Draghi’s speech in Portugal on Tuesday indicating that there is a risk of extended period in low inflation in the eurozone. Deflation might be a possibility if it continues. This indication alerted the market on possible monetary policy ease to avoid further slipping to inflation.
The material has been provided by InstaForex Company – www.instaforex.com
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