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European stocks finished Monday trading at their highest levels in 22 months, led by Germany’s leading DAX index setting a new all-time high.
The pan-European STOXX 600 index rose by 0.6% to close at 441.7 points, its highest level since February 2019. Similarly, the UK’s FTSE 100 index ended 0.5% higher at 7,157.7 points and France’s CAC 40 ended the day up 0.7% to 6,042.9 points.
Driving the region’s strong performance was Germany’s DAX index, the European market bellwether, which closed at a record high of 15,166.4 points. This represents an increase of 1.5% compared to the previous day’s close.
The milestone follows the last week’s optimistic tone ahead of the US presidential election, with the index increasing 6.4% since 3 November – the highest weekly growth since April.
Some of the index’s components to climb to new all-time highs included pharma giant Bayer and Lufthansa. German auto parts maker Continental, however, was one of the few stocks to drop, closing 2.9% down.
The news has been welcomed by investors, with UBS Wealth Management Chief Investment Officer Mark Haefele telling Reuters that “given Germany’s reliance on exports, a weaker currency and renewed investor confidence despite the risks have continued to fuel the country’s Index upward trajectory.”
Others are less bullish, however, with some analysts cautioning that long-term performance could be hurt if the European Central Bank fails to support the stock market during its current recovery.