German blue-chip index DAX hits new record high

Germany\'s DAX-30 index climbed to yet another all-time high in early Monday trading, reaching 9439 points shortly after the Frankfurt Stock Exchange started operating.

Analysts agreed the new rally came on the back of positive market data from the US towards the end of last week, and the medium-term impact of the Fed's decision to start tapering its efforts to spur growth through purchasing debt. This was widely seen as a sign of confidence in the economy.

Also affecting the DAX on Monday was an announcement by the International Monetary Fund to raise its outlook for the US economy. IMF chief Christine Lagarde told reporters a better forecast was justified because of the budget deal reached by Congress and the recent drop in US unemployment.

New target in sight

While Christmas season trading may not bring any more surprises, the long-term outlook for Germany's blue-chip DAX remained positive, traders said Monday.

'There are still many reasons why the DAX may climb to new highs,' NordLB economist Tobias Basse told Reuters news agency. 'We expect the index to clear the 10,000-point hurdle within the next six months.'

Leading the index on Monday was German chemicals company Lanxess, which forecast rising profits for 2014 after struggling to meet targets in the current year.