The German stocks went ahead as the benchmark gauge DAX Index rose to the 3rd successive record high of the same. Markets on today opened during a national holiday and the overall volumes experienced a decline as well. The benchmark gauge DAX Index surged ahead by 0.2% and it is currently at 8,262.55. The benchmark gauge was able to set records for the previous 2 days as the companies posted earnings surpassing the forecasts. The gauge has experienced a surge of 8.5% in 2013 as the Central banks from all over the world maintained the respective stimulus measures. On the other hand, the broader HDAX Index gained 0.2% as well.
According to the Fund Manager of UBS Global Asset Management, Bill O’Neill, the central banks are currently showing commitment to deliver the recovery through the end of 2013 and into 2014. Bill added further that at any stage, a correction of 5% can happen, however, there are chances, that with the mood in the market and the abundant liquidity, this will actually be bought into.
On today, the total volume of shares changing hands was 53% less in comparison to the average of the last 30 days. On today, most of the businesses in Germany were closed due to it being the Ascension Day holiday.
The bond purchase program of the Bank of England was left unchanged by the Monetary Policy Committee at 375 billion Pounds. Incidentally, most of the economists predicted that no change will occur to the bond purchase program and in reality, the very same thing happened. The key interest rate was also kept at record low figure of 0.5% by the Central bank, meeting predictions of most of the economists. The minutes of the meeting will be published by the bank on 22nd May.
Among companies, the largest steelmaker of Germany, ThyssenKrupp AG rose to a figure that’s the highest in last 5 weeks. However, still the shares of this company have experienced a decline of 15% in 2013. On the other hand, the mobile phone advertising company YOC AG saw its shares surging the most in the last 3 months as it sold 1.3 million Euros of shares in an attempt to increase the capital. The shares of YOC went ahead by 7.6% and are currently at 5.07 Euros. This rally of the company is the largest since 22nd January.