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. Last Updated: 07/27/2016

German Stocks Close High, Paris Bourse Ends Firm

LONDON -- German stocks closed at new record highs Monday and the Paris bourse ended firmer as Wall Street moved ahead again following its storming close last week.


In currency dealing, the dollar recovered from troughs against the Deutsche mark and yen in late European trading after ambling sideways in narrow dealings, but the market was subdued because of a market holiday in Britain.


The Dow was up around 25 points when European trading drew to a close. This follows its 94.72 point, or 1.36 percent rise, to a new peak Friday, based partially on confidence following an agreement to balance the U.S. budget.


This was enough to help push Frankfurt's Dax index of floor trading and the IBIS Dax index of electronic trade to new records.


The 30-share DAX comfortably exceeded a previous record-high of 3,474.28 points to close the bourse up 68.41 points, or nearly 2 percent at 3,528.78 points, just off an all-time high of 3,533.18 points, a level which was reached earlier in the session. The IBIS Dax ended at 3,565 points, up around 2.1 percent.


Dealers said trade was also underpinned by the continuing strength of the dollar -- good for German export -- and Dax futures. Automobile stocks had led the way but trading volumes were limited by the absence of London-based investors.


"After the massive jump in the first quarter, people seemed to be a bit nervous and April seemed to be a bit of a consolidation phase," one trader said.


"If we don't get any massive dirt from the U.S., this may be sustainable," he added.


French shares closed higher supported by Wall Street, but trading in Paris also suffered from low volumes because of the absence of London, Europe's biggest stock exchange.