Dax index gains ground on rising German business confidence

<p>The Dax index has rallied as German business confidence climbs in December.</p>

The German Dax index has made gains in trading this afternoon (December 19th) after a report indicates German business confidence has advanced again.

According to the closely-watched report by Ifo, which is based on a survey of 7,000 companies, the country's companies are more optimistic about the nation's outlook.

The index rose by more than anticipated from a reading of 101.4 in November to 102.4, with manufacturer confidence making the biggest advances from month to month.

Ifo's expectations index increased from 95.2 to 97.9.

Analysts claimed the index indicates any anticipated contraction in Europe's largest economy will be short-lived.

Ifo's president Hans-Werner Sinn remarked: "As the year draws to a close, German companies are more confident about the future."

At 14:00 GMT, the Dax rallied by 0.2 per cent – or 19.5 points – to an index value of 7673.1 points.

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