The Dax extended its recent gains on Wednesday. The leading German index closed 1.09 percent higher at 13,195.81 points. The MDax for medium-sized stocks rose by 1.70 percent to 24,211.78 points. Boost for the stock exchanges on both sides of the Atlantic came from Canada: the country's central bank had increased its key interest rate less than expected.
The Bank of Canada has sparked a rally in risky assets, wrote market analyst Michael Hewson of trading house CMC Markets. The move by Canada's monetary authorities suggests central banks are beginning to consider the possibility that overly aggressive rate hikes could do more harm than good to the economy. Market expert Andreas Lipkow added: "The hope of an imminent economic recovery in the euro zone and a reduction in inflationary pressure makes investors more confident about the German market as a whole."
In Germany, the reporting season, which has already gotten off to a good start, has been a topic of conversation. Deutsche Bank, for example, sees itself prepared for the impending economic downturn after surprisingly making billions in profits in the third quarter. Shares closed more than a percent higher.
The shares of Mercedes-Benz also increased by a good one percent. The quarterly figures described as "strong" and the carmaker's increased annual outlook were well received on the market. However, the expert Philippe Houchois from the analysis house Jefferies restricted that the operating margin of the Mercedes brand was "not exactly outstanding".
Among the best values in the Dax, Fresenius rose by around four percent. In an interview with the "Frankfurter Allgemeine Zeitung", the new boss Michael Sen promised quick results in the realignment of the troubled medical and clinic group.
Thanks to a recent surprisingly good development, the electronics retailer Ceconomy exceeded its sales forecast for the past financial year despite the gloomier consumer environment. With an increase of around 13 percent, the paper secured first place in the SDax small-cap index.
Poor industry news, on the other hand, weighed on semiconductor stocks. The shares of Infineon and those of the supplier Aixtron were among the weakest papers on the German stock market. Texas Instruments caused a gloomy atmosphere. The US chip group had announced that the weakness of business in the entire industry had increased over the course of the third quarter.
The EuroStoxx 50 rose by 0.55 percent to 3605.31 points. Paris' Cac 40 and London's FTSE gained similar amounts. In New York, the Dow Jones Industrial gained almost 1 percent at the close in Europe.
The euro rose above parity for the first time since mid-September, late afternoon trading at $1.0068. The European Central Bank had set the reference rate at 1.0023 (Tuesday: 0.9861) dollars. The dollar thus cost 0.9977 (1.0141) euros.
On the bond market, the current yield fell from 2.19 percent on the previous day to 2.11 percent. The Rex pension index increased by 0.52 percent to 127.62 points. The Bund future gained 0.46 percent to 138.86 points.
