German DAX hits record high as automakers rally By Reuters


© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

(Reuters) – Automakers lifted the German DAX to a record high on Thursday, while euro zone blue-chip stocks jumped to pre-pandemic levels after the U.S. Federal Reserve vowed to keep interest rates low despite forecasting a surge in economic growth.

An index of euro zone’s top 50 companies gained 0.3% in early trading, briefly surpassing its peak hit in February last year before the COVID-19 pandemic hammered financial markets.

Germany’s blue-chip DAX rose 0.7%, 40 was up 0.2%, while UK’s slipped 0.1% ahead of the Bank of England’s monetary policy decision due later in the day.

The wider pan-European rose 0.3% and was trading less than 2% below its all-time high.

With the rising in after the Fed decision, economically sensitive sectors such as automakers, banks, miners and travel & leisure led the gains in Europe.

Volkswagen (DE:) jumped 6.1%, sealing its position as the most valuable company in after it overtook software maker SAP on Wednesday.

Sectors considered as bond-proxies such as utilities, food & beverage and healthcare stocks were trading lower.

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