ROME: European stocks have rallied on optimism over quantitative easing in the eurozone, with Frankfurt topping 12,000 points for the first time.
Germany’s leading stock market index smashed through the psychologically important level, one week after the European Central Bank began its bond-buying stimulus.
Frankfurt’s benchmark DAX 30 soared 2.2 per cent to a new record close at 12,167.72 points. The DAX has gained 24 per cent since the beginning of the year.
London’s FTSE 100 index rose 0.9 per cent to close at 6,804.08 points, and the CAC 40 in Paris climbed 1 per cent to 5,061.16 points.
“The benefits of the ECB’s QE policy continue to drive European equities higher with the DAX leading the way,” market analyst Alastair McCaig at traders IG said.
“Germany continues to spearhead the move higher for the rest of the eurozone.”
Wall Street also rose on Monday ahead of an eagerly awaited US Federal Reserve meeting this week. At midday in New York, the Dow Jones Industrial Average was up 1 per cent to 17,924.79 points, the broad-based S&P 500 also gained 1 per cent to stand at 2,073.63 and the tech-rich Nasdaq Composite Index added 0.9 per cent to 4,913.64.
In foreign exchange activity, the euro rebounded after hitting a fresh 12-year low against the US dollar at $US1.0458 in earlier Asian trading hours, its lowest level since early January 2003. But the European single currency later recovered to $US1.0608, up from $US1.0489 late in New York on Friday.
Investors are keeping their focus on the Fed’s policy meeting on Wednesday, seeking a clearer timeline for when it will raise interest rates as the US economy strengthens.
