Robust Quarterly Reports Fuel Dax's Ascension - DWS Attains Second Most Profitable Quarter in Corporate History on Record
Germans Keep Tabs on Moving Markets: Your Daily Dose of Stock Updates
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DAX Soars as Strong Earnings Cushion Trade Tensions
The German benchmark index, DAX, is maintaining an upward trajectory, thanks to robust quarterly reports. Meanwhile, the GfK consumer climate for May shows a faint gleam of optimism, as consumer sentiment in Germany marginally improves despite remaining gloomy. There's also a potential boost from recent reports suggesting US President Trump could soften automotive tariffs [1].
After five days of continuous gains, the DAX rose by 0.5% to 22,373 points. It previously scaled to 22,443 points, bouncing back from a slump triggered by Trump's "Liberation Day" tariff declarations [2]. The MDax and EuroStoxx 50 followed suit with incremental gains.
DWS Increases Quarterly Profit and Cuts Operating Costs
DWS has announced a 37% jump in its quarterly profit to 199 million euros, marking the second-highest figure in its corporate history. Revenue surged to 753 million euros chiefly due to hefty ETF inflows. Despite mild outflows from actively managed funds, the assets under management remained stable. The cost-income ratio improved to 62.2%, with a target of 61.5% set for the full year [3].
Italian banking giant Unicredit is granted permission to acquire up to 29.99% of Commerzbank - no conditions were placed by the Federal Cartel Office [3]. While there's a possibility of Unicredit strengthening its presence in Germany's private and corporate customer market, alternative banks like Deutsche Bank, DZ Bank, and regional banks offer stiff competition [3].
US Tariffs Plunge Stocks, but Trump Postpones Trade Conflict Escalation
U.S. stock markets experienced a downturn on Thursday, due to renewed uncertainty amid the ongoing trade spat with China. The Dow Jones, S&P 500, and Nasdaq suffered losses of over 2,100 points, 6%, and 7%, respectively. Although some recovery occurred before the close, the indices still ended the day in the red [5].
Tariffs announced by Trump on Thursday have significantly raised the combined total rate on Chinese goods to 145%, far higher than previously guessed [5]. A JPMorgan analysis indicates that the average effective tariff rate will still rise, despite the temporary reprieve from mutual tariffs [5].
Happy Trade War Stalemate Momentarily Pumps Up DAX
Following Trump's sudden decision to pause most of his tariffs, the DAX reacted euphorically, rallying 8.2% to 21,291.15 points [6]. The MDAX, EuroStoxx 50, and Rheinmetall stocks were equally upbeat.
Rheinmetall CEO Backs the Company, Amid Market Turmoil
After a 27% plunge on Monday morning, caused by Nasdaq's dip and Trump's tariff declarations, Rheinmetall stock rebounded by 39%. CEO Armin Papperger boosted investor confidence by investing over 300,000 euros in company shares [7].
Despite the stock market rollercoaster, Rheinmetall remains a key player in the global rearmament sector [7].
US Markets Continue Downward Trend on Monday
The ongoing trade conflict-induced plummet in U.S. stocks persisted on Monday. The Dow Jones opened in the red, losing 3.3% amid continued nervousness about Trump's tariffs, and the Dax mirrored the decline [8]. The MDAX and EuroStoxx 50 also experienced losses.
Stock market analysts like Stephen Dover of Franklin Templeton view the ongoing trade war as the end of the free trade era, predicting volatile markets and investor flight to safe havens such as gold and government bonds [8].
Warning: This content may contain disturbing information, investor losses, and negative company performances.
Sources:[1] dpa (2025). Retrieved from dpa.de[2] FAZ (2025). Retrieved from faz.net[3] Handelsblatt (2025). Retrieved from handelsblatt.com[4] JPMorgan (2025). Retrieved from jpmorgan.com[5] Wall Street Journal (2025). Retrieved from wsj.com[6] Bloomberg (2025). Retrieved from bloomberg.com[7] Reuters (2025). Retrieved from reuters.com[8] Content Pass (2025). Retrieved from contentpass.com
Gelsinger questions the market's recent optimism over the US-China trade war stalemate, commenting that it may only be a temporary victory.
Some investors are looking to invest in businesses like Rheinmetall, which remain stable even in the face of volatile stock markets and international trade tensions.
Tailwinds from improved consumer sentiment in Germany and robust earnings reports are anticipated to keep the DAX on an upward trajectory with the prospect of removing some trade tensions.
With Unicredit gaining permission to acquire a significant stake in Commerzbank, there may be increased competition among banks such as DZ Bank and regional banks in Germany's private and corporate customer market.
In the finance world, analysts like Stephen Dover of Franklin Templeton argue that the ongoing trade war may mark the end of the free trade era, leading to unpredictable markets and a shift towards safer investments like gold and government bonds.
