By midday, the leading German index had gained 0.9 percent to 17,003.54 points. "This is an impressive continuation of the upward trend that began in early November last year," said Jochen Stanzl from CMC Markets. The Dax last reached an all-time high of 17,003.28 points in mid-December.

The German benchmark index was also supported by ongoing speculation that the US Federal Reserve and the European Central Bank will cut interest rates for the first time in the coming months.

(Report by: Anika Ross, Daniela Pegna, edited by Kerstin Dörr. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).