Rejuvenated DAX Hits All-Time High after Trump's Tariff Slump
Stock prices for Dax significantly surge following a downturn in the market caused by Trump's recent announcement.
In a surprising turn of events, Europe's leading index, the DAX, has rocketed to a new record high, climbing 0.7 percent to hit 23,529 points, following a gloomy month due to US President Donald Trump's tariff wrangling. This leap surpasses the previous record of 23,476 points, originally expected to see only a minimal increase below the old record[1].
Celebratory cheers can be heard across the trading floors, as the optimism among investors soars after the recent US-UK trade agreement. Markets rejoiced last Thursday, with the DAX closing 1 percent firmer at 23,353 points, and the US stock exchanges echoing similar sentiments, albeit not with the same level of jubilation[2].
However, Thomas Altmann, portfolio manager at asset manager QC Partners, issues a caveat - "Now everyone is hoping for further deals, but it should not be forgotten that the starting point of this deal was different and above all easier. Because the UK already generates a surplus with the USA in trade, it had to make fewer concessions"[2].
As the week concludes, the Chinese economy takes center stage. Preliminary customs data indicates a substantial 8.1 percent year-on-year rise in China's exports for April, while imports showed a minor 0.2 percent decline. Economists were anticipating a far more pronounced decrease in trade due to the escalating trade conflict with the US[1].
The end of the week spotlights Commerzbank's business report, along with other key players such as Krones and Bechtle. Simultaneously, in the US, Lockheed Martin and AbbVie are scheduled to host their annual general meetings[1].
Krones experienced a noteworthy uptick of almost 3 percent in the MDAX, underscoring the company's resilience against the looming threat of US tariffs[1].
References:1. ntv.de2. chl/DJ/rts/dpa
- DAX Recovery After Tariff Turmoil: Is the Stock Market Boom Justified?
- Financial Optimism: Europe's Stocks Surge after US-UK Trade Agreement
- Trump's Tariffs: Impact on the DAX and Global Markets
- pharma companies in the biopharmaceutical industry, such as Commerzbank and AbbVie, are preparing for their annual general meetings this week.
- The employment policy of these companies might be a key topic of discussion during these meetings, considering the current surge in the DAX and the optimistic atmosphere in the financing sector.
- The index, serving as a benchmark for the German stock market, has witnessed an impressive climb to an all-time high, boosting the confidence of investors and sparking hope for continuous growth in the business sector, from the biopharmaceutical industry to the community at large.
- Asset managers are indexing their strategies accordingly, with QC Partners issuing a word of caution about the current tariff situation, emphasizing that the UK-US trade agreement was easier to secure compared to future deals that may be on the horizon.
