Celebration follows panic on Dax
The Dax, an index of the top 30 German companies, made a 5 percent gain on Thursday, as good earnings in the real economy, as well as gains in Asian and American markets helped calm the mass panic on the bourses.
“Because of the below average development at the beginning of the week, the Dax should clearly increase,” a trader told German business magazine, Manager Magazine. “The decline seems to have passed and everybody is relieved,” said another trader.
The Dow Jones made a historical leap on Thursday afternoon from minus 2.7 percent to plus 2.5 percent. Nokia’s historic 24 percent leap in net sales buoyed stocks in Helsinki up 13 percent on Thursday. This boost, seen as a positive sign for the telecom industry, helped raise equity values elsewhere.
Thanks to a recommendation from Goldman Sachs, Eon, the German energy company, saw an increase of 3.6 percent in its stock price. Deutsche Post stocks climbed 5.2 percent. Siemens’ stock increased 1.3 percent and Porsche stocks went up 6.5 percent after their sales surpassed analysts’ expectations. The TechDax, an index of technology companies in Germany, saw a gain of almost 5 percent. Software AG was a star with a win of 17.8 percent.
The DAX sank 7.1 percent to 6790 points on Monday, along with significant losses on other bourses. These losses have created heightened volatility this week, which has now largely stabilised.