Midday update on Dax: Anticipation for ECB's interest rate decision persists
In a positive turn of events, the German stock market index, the DAX, had a strong start to trading on Thursday, July 24, 2025. The index, calculated at approximately 24,355 points at 12:30 PM, was 0.5 percent higher than the previous day's closing level.
The primary drivers behind the DAX's positive performance were rising optimism about a US-EU trade deal and robust earnings reports, particularly from Deutsche Bank. The bank's shares led the price list with significant gains, up about 7%, following its impressive Q2 earnings report. Deutsche Bank posted a profit of 1.49 billion euros compared to a loss of 143 million euros in the same quarter last year.
The bank's profit before tax was notably higher at 2.42 billion euros, versus 411 million euros previously. Deutsche Bank also maintained its revenue expectation of around 32 billion euros for fiscal 2025, which helped boost investor confidence.
Other notable companies also experienced changes in their prices. Deutsche Telekom, Siemens Healthineers, BASF, Deutsche Post, Commerzbank, Bayer, Continental, and Beiersdorf all contributed to the overall index rise.
The trade optimism stemmed from reports that the US and EU are moving toward a deal involving implementing 15% tariffs on select European imports and scrapping some existing duties, which investors viewed positively for market sentiment.
The overall market condition for the DAX was relatively neutral, with the Relative Strength Index (RSI) at 57.00, suggesting balanced buying and selling pressures. However, the MACD indicator showed a slight bearish signal, indicating the need for cautious monitoring of the trend going forward.
Despite the positive trend, some companies such as MTU, Vonovia, and Infineon continued to be at the bottom of the price list.
In summary, the DAX's gains on Thursday were primarily driven by trade deal optimism and strong corporate earnings, with Deutsche Bank's impressive quarterly results playing a key role in its stock's significant rise. Investors should, however, remain cautious due to the slight bearish signal indicated by the MACD.
In the context of the German stock market's growth, Deutsche Bank's impressive Q2 earnings that showcased substantial profits and maintained revenue expectations leaned the business landscape towards investing in finance. Other noteworthy companies such as Deutsche Telekom, Siemens Healthineers, BASF, Deutsche Post, Commerzbank, Bayer, Continental, and Beiersdorf also contributed to the positive performance of the DAX index.
