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US stimulus hopes push Germany’s DAX beyond 14,000 points for the first time

FRANKFURT: Germany’s premier DAX 30 index closed at a record high on Thursday, shortly after crossing the 14,000-point mark for the first time ever in hopes of eliciting fresh US stimulus.

The Frankfurt index jumped to an all-time high of 1,4007.47 points earlier in the session, before closing at 13968.24 points, up 0.55% from the previous day.

The record came as merchants ignored supporters of President Donald Trump’s storming of the Capitol Building in Washington, DC.

It took the prestigious DAX index more than three years to move from 13,000 points to breaching an important psychological barrier of 14,000.

Asian, US and European stock markets also saw gains, as investors looked beyond the US violence to focus on expected policies from Biden.

Milan Katkovic, an analyst at Axi, said that investors in Frankfurt “are not alarmed by the chaotic scenes in Washington where protesters stormed the Capitol.”

The US Congress formally approved Biden’s Democratic victory on Thursday, raising hopes for a fresh US stimulus to help America deal with the economic fallout from the pandemic.

Analysts believe that while the new president can undo many of the tax cuts Trump has imposed on the wealthy and corporations, he is unlikely to be seen until he deals with the virus and put the economy back in business.

Patrick J. O’Hare, analyst at Briefing.com, said the narrow majority of Democrats in the Senate “indicates that it will be difficult to raise taxes in a tough macro environment, but more stimulus is likely to be passed.”

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