The DAX ended up as the one major outlier on Wednesday, with the rest of the Western markets pushing higher following the $2 trillion stimulus package in the US.
The Dow Jones started trading by rising another 600 points, climbing to 21250 for the first time in 9 days. That’s some turnaround from Monday’s sub-18200 levels; it is still, however, more than 8000 points adrift from the Dow’s February all-time highs. There’s a long way to go yet...
Still, a positive US open broadly helped things keep going in Europe. The FTSE crossed 5550 thanks to a 170 point increase, with the CAC up 3.1% as it rose past 4300.
Curiously the DAX was reluctant to join in. Initially the German index was as bubbly as its peers, striking 10140 during the early hours of the session. Yet it became more and more reticent as the day went on, falling into the red before settling back flat at 9650.
The G7’s pledge to do what it takes, the stimulus plan in the US and the Fed’s unlimited QE announcement finally seemed to create a reassuring enough atmosphere to allow a fairly robust rebound. Where that leaves the markets without another wave of such statements and measure, however, is unclear, making Thursday’s session a mightily interesting prospect.
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