Germany’s blue-chip DAX index broke above 27,000 points for the first time Thursday, lifted by fresh optimism about the artificial intelligence boom and healthy corporate earnings.
The index rose more than one percent in morning trade, reaching 27,001 points, with industrial giant Siemens climbing more than four percent after reporting record profits boosted by data centre demand.
Shares of online fashion retailer Zalando jumped four percent, extending a rally sparked by forecast-beating results released last week.
Other European bourses gained, with Paris up around 0.5 percent and London about 0.2 percent.
For the DAX, the “overall backdrop could hardly be more favourable,” said CMC Markets analyst Andreas Lipkow.
“Falling energy prices, convincing quarterly figures and hopes of a sustainable economic recovery are providing an increasingly solid foundation for the continuation of the year-end rally,” he said.
A council of economists who advise the government on Wednesday sharply upgraded their growth forecast for Germany this year to 1.3 percent, the latest rosier forecast for Europe’s top economy.
But Lipkow said there were risks to markets due to the continuing controversy surrounding AI giant Nvidia, whose boss Jensen Huang is facing a board revolt amid a probe into an affair with a woman accused of spying for China.
“Rumours that a successor is being sought are weighing on the stock,” Lipkow said.
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