German Dax has best year since 2003 as ECB takes action

<p>The German Dax is set to have its best year in the past nine.</p>

The German Dax is on its way to rounding off its best year since 2003, as bulls say the gauge will become the first national benchmark in the eurozone to exceed its 2007 peak for earnings.

Bloomberg reports that the index advanced by 29 per cent throughout 2012 to close of play last week, which is the biggest advance out of every developed market tracked by the news agency apart from Greece.

This progress has been underpinned by the European Central Bank's (ECB) plans to buy the bonds of the most indebted eurozone states.

As such, this year's performance marks a rebound from a 15 per cent dip in 2011, when investors sold the Dax as a proxy for southern European markets, where authorities had prohibited short selling.

At 14:22 GMT, the German Dax rose by 0.4 per cent to 7666.9 points – an increase of 30.7 points.

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