DAX breaks 10,000 again

The Germany 30 has broken through the 10,000 barrier once again after the Federal Reserve trimmed its stimulus package.

A flag waves outside the German stock exchange in Frankfurt
Source: Bloomberg

The Germany 30 is trading at 10,016, up 0.8% on the day after the Fed reduced its bond-buying scheme by $10 billion to $35 billion per month last night, in line with expectations.

The Fed stated that additional tapering might be required in the future, depending on inflation and jobs data, as Janet Yellen pointed it out that US growth is slowing down. Ms Yellen is clearly in no hurry scrap the bond-buying programme or increase interest rates. 

Deutsche Lufthansa AG is off by 0.8%, as the stock can’t seem to get back on track after last week’s profit warning. Higher oil prices on the back of uncertainty in Iraq are also weighing on the company’s share price.

Tomorrow Germany will announce its PPI report for May. While analysts are expecting a reading of 0.2%, weak figures could suggest that costs are falling in Germany. This could lead to more monetary easing from the European Central Bank and push Germany to new record highs. 

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