Stocks Surge on Rate Cut
May 04, 2011
The weighted 30-share IBIS DAX stock index advanced 24.98 points to 2559.42. That increase put it back near Tuesday's close, after shedding 27.68 points Wednesday on fears the German central bank would leave rates unchanged. The gains in late electronic trading followed rises during the official three-hour floor trading session on the Frankfurt stock exchange. The official DAX stock index that tracks prices in floor trade rose 13.52 points to 2557.26. Most of the gains registered by the end of the IBIS electronic trading session had already been posted by the time floor trading closed. Dealers said further gains were held back by mixed reaction to the easing on Germany's bond market. Bond prices managed bounce back from their prior-day declines. In late afternoon trading, the benchmark German 10-year 6.25% bond dated April 2021 was priced at 99.68 to yield 6.29%. That price was up from Wednesday's at 99.64 yielding 6.30%.
