- Title: Germany's DAX reaches 20-month high in wake of Dow Jones record
- Date: 26th January 2017
- Summary: FRANKFURT, GERMANY (JANUARY 26, 2017) (REUTERS) WIDE OF FRANKFURT TRADING FLOOR TRADER AT DESK DAX INDEX BOARD VARIOUS OF TRADERS AT DESKS DAX INDEX BOARD CLOSE OF DAX INDEX BOARD TRADERS AT DESK CAPITAL MARKETS ANALYST, ASCAN IREDI, TALKING TO COLLEAGUE TRADER AT DESK (SOUNDBITE) (German) CAPITAL MARKETS ANALYST, ASCAN IREDI, SAYING: "It is just this fantastical high that has ridden in on the election of Mister Trump. There was a small break at the beginning of the year and now it is all go again. Of course we are all rubbing our eyes in disbelief. Why now of all times? But it is what it is." TURNING COLUMN READING: FRANKFURT STOCK EXCHANGE (SOUNDBITE) (German) CAPITAL MARKETS ANALYST, ASCAN IREDI, SAYING: "The Dow Jones is really setting the standard. Over 20,000 for the first time in history. This is of course a very striking point. Still, I have to say it is also going well in the rest of the world and there you can see that the world works in parallel in contrast to how Trump sees things. Because in a globalised world there will be plus movement everywhere, especially here in Europe as well." VARIOUS OF INDEX BOARD SHOWING DOW JONES (SOUNDBITE) (German) CAPITAL MARKETS ANALYST, ASCAN IREDI, SAYING: "As long as Mister Trump doesn't put a spoke in the wheels we can expect the markets to be happy because if businesses are registering profit then, as we are seeing now, this will be reflected on the exchange. That is, if Trump doesn't push too hard towards protectionism that is concentrated on America. Then he will likely achieve the opposite effect and strangle the global economy, in doing so he would of course also strangle his own economy. And that is the danger. But as long as it is just about motivating future investments and lowering taxes then the markets are happy." TRADER WORKING WIDE OF DAX INDEX BOARD
- Embargoed: 9th February 2017 09:59
- Keywords: Markets DAX Trump European stocks
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Currencies/Foreign Exchange Markets,Economic Events
- Reuters ID: LVA00160PWHAL
- Aspect Ratio: 16:9
- Story Text:World stock markets climbed strongly on Thursday (January 26), with investors basking in the afterglow of a break past 20,000 points for Wall Street's record high Dow Jones index.
MSCI's 46-country All World index was within touching distance of its lifetime high as European stocks rose 0.5 percent to their highest since December 2015, completing a global loop after Asia's main bourses also saw a bumper session.
The 'Trump trade', based on hopes of U.S. stimulus reflating growth, would appear to be back on - egged on by some impressive corporate earnings, higher commodity prices and signals that global growth is finally finding some traction.
"As long as Mister Trump doesn't put a spoke in the wheels we can expect the markets to be happy because if businesses are registering profit then, as we are seeing now, this will be reflected on the exchange. That is, if Trump doesn't push too hard towards protectionism that is concentrated on America. Then he will likely achieve the opposite effect and strangle the global economy, in doing so he would of course also strangle his own economy. And that is the danger. But as long as it is just about motivating future investments and lowering taxes then the markets are happy," capital markets expert Ascan Iredi told Reuters TV.
The Dow had been flirting with 20,000 points for weeks so it brought widespread cheer when it broke through. It only topped 19,000 in November and this was the second-shortest time on record for the index to jump 1,000 points.
Europe's cross-country European STOXX 600 index was trading 0.6 percent higher by 0945 GMT at its highest since December 2015. Germany's DAX hit its highest since May 2015 and London's FTSE was near an all-time record. - Copyright Holder: REUTERS
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