Around the World's Markets: Frankfurt

THE GERMAN stock market hit a closing high for the year after robust gains in banking shares and a solid opening on Wall Street.

The DAX-30 index ended up 0.57 per cent, or 31.85 points, at 5,638.95 points. Bank shares surged after Morgan Stanley lifted its 12-month price targets on Deutsche Bank and HypoVereinsbank due to proposed changes to German taxation which could benefit banks.

Deutsche Bank climbed 3.57 per cent to 66.45 euros, while HypoVereinsbank rose 4.31 per cent to 68.32 euros.