DAX flat after record high

The German equity market is broadly unchanged after reaching yet another all-time high yesterday.

The DAX is dancing around the important 9300 level, little changed from yesterday’s close, and there seems to be to be no end to this bull run. Global equities benefitted from the deal struck between western countries and Iran. This agreement will lift some of the trade sanctions imposed on Iran, in exchange for the Iranian government agreeing to reduce its nuclear programme.

Today is a quiet day in terms of economic data and corporate reporting, but comments from Benoit Coeure of the European Central Bank suggested that negative interest rates could be a possibility. Mr Coeure stated that the central bank would be prepared to act against any disinflation, should it occur.

Interest rates in the eurozone are at 0.25%, as of the start of the month. Some investors view the rate cut as a sign that the region is still struggling, while other dealers recognise the relative strength of the of the Germany economy.

Germany 30 chart

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