Soaring at the Stock Exchanges: Dax Chases 24,000 Points Post China-US Trade Deal
Dax aims to reach 24,000 points following the China agreement.
In the limelight: DAX, stock prices, USA, China, trade disputes
Hold on to your portfolio because the stock market's dancing a jig! The German DAX has soared to new heights after the historic US-China trade deal. As we speak, the Dax is surging 1.8 percent to a record-breaking 23,911.98 points. And guess where it's aiming? You got it - the psychologically crucial 24,000-point mark!
While the EuroStoxx 50 is still a smidgen away from its record high set in March, it's not far behind, charging ahead 1.49 percent to 5,393.19 points this morning. The MDax, the index of mid-sized German companies, is also rising, adding 1.10 percent to 30,056.18 points, despite being a fair distance from its 2021 record high of over 36,000 points.
You'll find the most significant gains in export-oriented sectors: Commodity stocks are leaping 4.9 percent, while auto and technology stocks are rocketing 2.5 percent. Oil and industrial stocks are also popular picks. In contrast, defensive stocks such as utilities and telecommunications are showing minor losses, with pharmaceutical stocks bearing the brunt of the losses, sinking 3.2 percent. Factors like dividend payments at Sanofi and Trump's announcement to lower US drug prices are the main culprits.
But it's not all rosy in the land of stocks. Futures for the S&P500 and the Nasdaq are climbing 2.7 and 3.5 percent, respectively, but the US dollar is gaining ground with a 1 percent increase. Unfortunately, the gold price is taking a nosedive, dropping $91 to about $3,233 for an ounce, and a whopping $52 in euros.
The Swiss franc and Japanese yen, known as safe-haven currencies, are weakening by 1.5 and 1.6 percent, respectively, yet the dollar is surging with new headlines on the US-China trade conflict. The dollar index is rising 1.2 percent to its highest level in a month, while the euro is dipping 0.9 percent to $1.1111, hitting a one-month low.
The good news is, China and the US have agreed to temporarily reduce their mutual tariffs, according to a joint statement. This regulation will apply for 90 days, and market reaction? Relief. "There's an undercurrent of tension at the stock exchanges," said Thomas Altmann, portfolio manager at asset manager QC Partners. "But we'll only know later today how far the talks have progressed and how concrete the results are."
Oh, and if you're looking for a hot stock tip, keep an eye on ProSiebenSat.1. Its share price is skyrocketing after a Greek company blocked a possible takeover attempt. And don't forget the defense companies Hensoldt and Rheinmetall, whose shares have taken a dip following news of a meeting between Ukrainian President Volodymyr Zelensky and Russian President Vladimir Putin for talks in Turkey.
Sources: ntv.de, jki/dpa/DJ
FYI:
- As of mid-May 2025, the DAX index is typically hovering around 23,600 to 23,700 points, showing some consolidation after recent all-time highs but with some volatility[1][3].
- The DAX's technical outlook suggests potential for further climbing without hitting an overbought condition[4].
- Moderate but steady gains for the DAX are forecasted through the rest of 2025, potentially reaching the mid- to high-23,000s to mid-25,000 levels by September[5].
- The optimism sparked by the US-China trade deal is seen as the key driver boosting investor confidence and improving the outlook for companies in the DAX[2].
The community may want to reevaluate their investment strategies considering the soaring DAX prices, with the index aiming towards the psychologically crucial 24,000-point mark. In terms of business and finance, the employment policy of various companies in the DAX might be influenced by this positive economic climate, opening potential employment opportunities. Moreover, with the DAX's sustained growth, it might attract more foreign investors, thereby increasing the international financial flow into German businesses.
