Investors Focus on U.S. Data
May 19, 2011
The weighted 30-share IBIS DAX stock index, which tracks prices in electronic trading, settled 10.19 higher to 2542.74. In earlier official floor trading, the weighted DAX stock index of 30 blue-chips closed down 12.54 to 2517, after slipping 2.85 on Thursday. Initially, the market fell in reaction to the announcement of a better-than-expected August employment situation, a sign of a strengthening economy. That data, consequently, triggered fears that the Federal Reserve would raise U.S. interest rates at their next meeting, traders said. Despite the jobless data, U.S. stocks rose, and German shares quickly rebounded as traders covered short positions. Dealers said that the improved dollar also aided in the market's recovery. Shortly after the close of electronic trading, the dollar traded at 1.4897 marks, up from 1.4854 marks late Thursday. Among individual shares, traders said automobile stocks performed well due to the stronger dollar, with Volkswagen's shares finishing 4.60 marks higher to close at 551 marks a share, and shares of Daimler-Benz adding 50 pfennig to 80.10 marks a share. And rising bond prices also served to lift share prices in IBIS trading. Late in the day, the German benchmark 10-year 6.25% bond dated April 2021 was priced at 99.33, yielding 6.33%, up from Thursday's price of 99.15 with a yield of 6.36%.
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