Economy & Politics

Dax rises to a record high

The German share index Dax has risen to the highest level in its history. (Symbol image) Photo: dpa / Frank Rumpenhorst

The corona crisis has also had a significant impact on the stock exchanges. First the share prices in Frankfurt crashed spectacularly. Now they are picking themselves up again to new heights. There are several reasons for this.

Frankfurt – The German share index Dax rose to a record high of 13,795.37 points shortly after the start of trading on Monday morning. The index barely exceeded the previous record high of February 17, 2020 at 13,795.24 points.

During the Christmas break, two conflicts that had previously weighed on stock prices resolved. On the one hand, after a long struggle, there was a Brexit deal, on the other hand, US President Donald Trump still put a $ 900 billion corona stimulus package into effect. The start of the vaccination in many European countries also generated further optimism.

In November, the victory of Democrat Joe Biden in the US presidential election had already taken uncertainty out of the market and caused prices to rise.

Investors rely on a strong economic upswing

The corona crisis, which pushed the leading German index down to 8255 points in March, seems to have been forgotten with a view to share prices. Investors are counting on a strong economic upswing. And: The central banks are pumping billions upon billions into the financial markets – money that has to be invested somewhere. The fact that the global economy is still not out of the crisis is receding into the background.

After the old record in February 2020, the mood of the party was quickly turned into panic in the wake of the corona pandemic: within weeks it fell by 40 percent to 8255 points. Only massive injections of money by central banks and governments for the economy, which was starving under lockdowns, brought about the turning point.

With the end of most of the lockdowns in the summer, the economy has picked up in many places, although in many countries it is still lagging behind its pre-crisis levels. Now further tightening of the pandemic measures are creating further risks. The main driving force is and will remain China, the country where the coronavirus first appeared and then spread around the world.

Current reports, background information worth knowing and useful tips – in our dossier we bundle all articles on Corona.


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