The German index the DAX 30, has traded to a new all-time intra-day high this morning, trading above 12,000 for the first time. The German economy is seen as the powerhouse of Europe, with a robust economy and major exporter. The weakening of the Euro couple with record low borrowing costs, and lower energy costs are ideal circumstances for further expansion of the German economy.
The stimulus announced by Draghi has led to traders bidding the index record high on the belief that the stimulus will trickle through to the economy. However the move could be short lived as traders reallocate the German inflows to the US on tightening bets.