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. Last Updated: 07/27/2016

German Interest Rate Cut Hopes Boost Frankfurt Shares

Renewed hopes of a German interest rate cut helped power Frankfurt shares to a fresh record Monday and underpinned other major bourses in Europe.


Rate hopes, fuelled by comments from Bundesbank Council member Hans-Juergen Koebnick, boosted German government bonds and equities followed suit.


Firm bonds and the German share rally also buoyed the Paris bourse, while London took heart from Wall Street's early advance.


With Tokyo closed for a holiday and U.S. treasury markets also taking the day off for the Martin Luther King holiday, the dollar spend a quiet day in Europe.


The U.S. currency closed little changed on the day after it failed to capitalize much on Koebnick's comment that there was scope for further cuts in German rates.


The dollar's firmness was also one reason cited by German dealers for the rise of the 30-share DAX index which ended floor trade at a record high for the second trading day.