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

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.