DAX continues to climb

The Germany 30 has managed to build on its gains from yesterday and is firmly above the 10,000 mark.

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Source: Bloomberg

The Germany 30 is trading at 10,024, up 0.15% on the day after the index managed to close above the important 10,000 level for the first time, and today it has extended its gains.

The European Central Bank’s decision to lower the base rate and impose negative interest rates on commercial banks in the eurozone is the driving force behind the rally in the Germany 30. On Thursday the ECB will reveal its monthly bulletin, and the announcement will provide economic data to support the interest rate reduction that was made last week. If the figures suggest additional monetary easing the Germany 30 could extend its record level.

As Brenda Kelly stated, a close above 10,015 could put the Germany 30 on track towards the 10,088 level in the short term, with 9990 providing support.

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