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German stocks hit all-time high

Tuesday, May 07, 2013 - 01:34

May 7 - World shares hit their strongest in almost five years and Germany's Dax reaches an all-time high, as signals top central banks will remain supportive of growth continued to drive markets. Ivor Bennett reports

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The only way was up in Germany today as the country's top stock index hit an all-time high. The DAX rose to over 8160 points, beating a previous best that's stood for over 5 years. Trader Oliver Roth says the rally's down to the recent strong support from central banks. (SOUNDBITE) (English) OLIVER ROTH, CHIEF TRADER FOR CLOSE BROTHERS SEYDLER BANK AG, SAYING "The reason for the all-time high is simply the low rates, the lowest rates in history. And as long as we have these low rates we will see some further going-up in the stocks, in the stock markets." The rally's not just Germany. World stocks hit their highest level in nearly 5 years today with the Nikkei also posting significant gains. As for the DAX, the last time it was this high was in the pre-crisis days of 2007. Much of the ground was made up last year with the index rising nearly 30%. German stocks were seen as a safe haven as the rest of Europe continued to struggle. The gains are expected to continue but some say there's always a chance the bubble could burst. (SOUNDBITE) (English) OLIVER ROTH, CHIEF TRADER FOR CLOSE BROTHERS SEYDLER BANK AG, SAYING "We have also the risk that in case of change of the interest rates policy, we will see a real huge impact onto the market and of course we have always the risk when there is so much money in the market, we have always the risk of bubbles blowing up." For now at least, traders are breathing easy. After all, the DAX just became the first, and so far only, major European market to top pre-crisis highs.

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German stocks hit all-time high

Tuesday, May 07, 2013 - 01:34