German Stocks Advance as DAX Index Extends Record
The DAX gained 1.1 percent to 8,351.5 at 9:49 a.m. in Frankfurt, climbing for a fourth day. The equity benchmark has risen 2.9 percent this week as companies reported better-than-forecast results and German factory orders unexpectedly increased. The benchmark has rallied 9.7 percent so far this year. The broader HDAX Index added 1 percent today.
“The rally is liquidity driven,” Raimund Saxinger, a fund manager at Frankfurt-Trust Investment GmbH, which oversees about $22 billion, said in a telephone interview. “Especially, cyclicals are in demand. This seems to suggest that there is increasing optimism of a recovery in the second half of this year.”
German exports, adjusted for working days and seasonal changes, advanced 0.5 percent in March from February, when they dropped 1.2 percent, the Federal Statistics Office in Wiesbaden said. The increase matched the median forecast of 16 economists in a Bloomberg News survey. Imports rose 0.8 percent.
South Korea’s cut its main interest rate yesterday. That was the 511th reduction worldwide since June 2007, according to Bank of America Corp.’s tally, done before Vietnam and Sri Lanka today said they’re lowering their policy rates.
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