Germany’s DAX Index Set to Continue Rising
In recent days the DAX index has reached its highest level for several weeks and is edging steadily back towards the 9,600 level. The new highs came after a survey found that Germany’s private sector has grown for the 16th consecutive month in August.
The PMI survey earlier this month has raised expectations that Germany’s economy, Europe’s second largest, could greatly expand in the third quarter of the year after is suffered from a surprise contraction in the second.
There were concerns that Germany’s economy would suffer due to the situation in the Ukraine; however, all the latest data suggests that the economy will keep on growing.
The market was further strengthened after the President of the European Central Bank, Mario Draghi, said that he is willing to take more unconventional action if it is necessary to stimulate a slow Euro zone economy. While some believe that there is little chance of him taking any action in the coming weeks, it is still positive news for the markets.
The DAX did fall slightly in the middle of the week, around 0.07%, but all the indications suggest that it will continue its general upwards trend in the coming months.