German equities have emerged as the main beneficiaries of the European Central Bank’s quantitative easing programme, with the Dax index breaking through, and closing above, the 12,000 barrier for the first time.
The striking performance of eurozone shares, led by German blue-chips, suggests the ECB’s efforts to boost the region’s economy and stave off deflation are working.
Even before the bank fired the starting gun on its €1.1tn QE programme last week, leading German companies were receiving a huge boost from low interest rates, sharply falling oil prices and a weaker euro that increased their foreign based revenues.
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