A flurry of activity on the Copenhagen Stock Exchange set a record this morning, with the C20 CAP – the 20 most traded Danish shares – reaching a new high price of 634.
The action came on top of news from the United States, where the Federal Reserve surprised analysts with a continuation of $85 billion (US) bond payments. This suggests the US economy is still too fragile to continue without the added stimulus. Analysts had previously speculated that the Fed would begin tapering the programme, a theory that had led to a summer chill on worldwide exchanges.
“Investors are positively surprised by the announcement from the US,” Jacob Pedersen, a senior Sydbank analyst, told Politiken newspaper. “Especially because the interest rates on bonds are low, so investors are looking towards shares instead.”
The surge in activity on the Danish exchange dovetailed with record trading on Wall Street, the Asian markets and the German DAX.
Analysts did warn of a hangover, particularly if the economy can’t catch up with the markets or if the US row over debt limits leads to a government shutdown.