The Einhell Share
The German stock index stride up and down with a peak in April of 12,390 points and a bottom in September of 9,325 points. Considering the development of the whole year 2015 the DAX closed with a profit increase of nearly 10%, which is equivalent to a year-end-closing rate of 10,743 points. The MDAX even reached a profit increase of nearly 23%. On a value basis the MDAX increased by 3,840 points, from 16,935 points at the beginning of the year to 20,775 points at the end of 2015.
At the beginning of 2015, the German stock market continued to benefit from low interest rates and extensive bond purchases by the EBC which were announced in January. Due to the enormous monetary expansion the euro exchange rate declined, which had a positive effect on the German strong export economy.
During the summer month, the Euro recovered slightly against the USD. This resulted from the FEDs further delaying of the long time expected increase of the key prime rate. However, the major rejection came from the Chinese markets. The economic performance of China slowed much faster than predicted. The central government in Beijing responded with a devaluation of the Chinese currency, whereby the downturn on Chinese markets strengthened. This also lead that the global economic forecasts have been steadily revised downwards. In autumn the German stock market suffered significant price losses as well.
At the end of 2015 the FED initiated the long time expected restrictive monetary policy, ehre the interest rates were raised, even only on a very small degree. The European Central Bank did not follow this decision, quite the contrary, at the beginning of 2016 it lowered its key rate to zero percent. At the end of the year the German stock market recovered and could totally growth for the whole trading year.