Automakers lift German DAX to a record high
The German DAX propelled to a record high on Thursday trade and blue-chip stocks of the euro zone reached pre-pandemic levels. These as the Federal Reserve of the United States pledged to keep rates at their current levels despite projections for economic growth.
Germany’s DAX increased 0.7%. France’s CAC 40 inched up 0.2%. Meanwhile, the U.K.’s FTSE 100 fell 0.1% prior to the policy decision release of the Bank of England later in the day.
The pan-European STOXX 600 added 0.3% and hovered near its highest level. Another index comprising of the euro zone’s top 50 firms was up 0.3%, slightly edging its peak hit in February 2020 before the coronavirus pandemic wreaked havoc in the global markets.
Volkswagen soared 6.1%, making a statement as DAX’s most valuable firm after it outperformed software maker SAP on Wednesday.
Sectors including banks, carmakers, and travel and leisure led the gains in the euro zone as the 10-year U.S. Treasury yield surges ahead after the Fed announced its policy decision.