DAX extends gains to test 18,700

Since the opening this morning the European stock markets have been pressing higher and that has seen the DAX lift further and not long ago test the 18,700 handle. That is the highest rebound point for the index since the August 5 relapse from the current 2024 and all time record high at 18,892. So, just as with the FTSE 100, the DAX is now closer to its record high. The gains come as the risk dynamic seems to favour stocks and weaken the Yen further. The US treasury yields are higher this morning too and that is pushing the Japanese currency lower across the board in terms of all its major pairings. So, whilst US yields rise modestly that would seem at odds with the outlook for Fed policy next month. However, it is worth noting, that we are talking about micro moves here and nothing that cannot be reversed at short notice. The DAX is currently trading at 18,685