The German stock market had a nice day today with a 2.7% gain however it was essentially rising with the tide as many equity markets around the world made strong gains. In Europe, France, Spain, the Netherlands and Finland were all up over 2% and Italy surged almost 4%. Here's the top 10 performing benchmark equity index from today's session:
The DAX has performed well so far in 2012 with a 15% gain since January 1st and is well on its way of recovering the losses from 2011. However there are some who have a lack of confidence in the sustainability of this current move and they have demonstrated their pessimism by moving their money into bonds. German bond yields have come in significantly over the past month. One of the more dramatic examples is the German 1 year Bund which has seen its yield drop to .07 from .18.
Today's gain notwithstanding, German equities have also shown weakness over the past 30 days which is probably an indicator that much of the money moving into Bunds is coming from stocks.
If Chaves loses, maybe Venezuelean stocks will see a big jump up.
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