German DAX Rises to a Record High, Supported by Carmaker Stocks

Auto stocks lifted the German DAX index to a record high Thursday, March 18th, while leading eurozone stocks jumped to pre-pandemic levels after the US Federal Reserve pledged to keep interest rates low despite anticipating increased economic growth.

The index of the 50 largest companies in the euro area gained 0.3% in early trade, briefly surpassing the peak it reached in February of last year before the Covid-19 pandemic hit financial markets.

The German DAX index of leading stocks rose 0.7%, the French CAC40 index rose 0.2%, while the British FTSE100 index fell 0.1% ahead of the Bank of England’s monetary policy decision later today.

The broader European STOXX600 index rose 0.3% and was trading below its all-time high of less than 2%.

With US Treasury yields rising ten years after the Fed’s decision, shares of highly vulnerable sectors, such as auto manufacturers, banks, mining, travel, and entertainment companies, led the gains in Europe.