Corona aid keeps the German stock market rally going

Corona aid keeps the German stock market rally going

Although the effects of the corona vaccinations that have only just begun have yet to develop and an end to the corona restrictions is not in sight, the stockbrokers will continue to rely on financial support from politicians and central banks in 2021. It is not certain that the Dax will continue to rise seamlessly at the beginning of 2021 - as the last trading days before New Year's Eve have already shown. After the top marks, the important indices of the Dax family had run out of strength for the time being. The German benchmark index ended the last trading day of the year on Wednesday with a close at 13,718 points. Despite the corona shock in 2020, it gained around three and a half percent. Since the annual low of 8255 points in March, it has even gone up by around two thirds. The MDax of medium-sized stocks closed on Wednesday 0.38 percent lower at 30,796.26 points, while the SDax small-cap index was almost flat. These two stock market barometers had also reached highs the day before. Most recently, it was a good fit for market participants that shortly before the end of the year after a violent tug-of-war between the two political camps in the USA, another corona aid package had been passed by Congress - and the outgoing US President Donald Trump quickly withdrew his veto. Speculation about an even larger package is already in circulation after the US House of Representatives voted to increase the corona aid payments. Whether this will actually happen is questionable in view of the resistance of the Republicans. In the Senate, higher aid payments to citizens were initially blocked.