Riding High: DAX Breaks Record Amid Optimism and Tariff Relief
Stock soars to new heights following Trump's market plunge (Dax)
After plummeting due to Donald Trump's tariffs, the leading German index, DAX, has soared to a new record high. The key factor behind this uptick is the optimism among investors following the successful US-UK trade deal.
In its first trading hour, the DAX rose by 0.7%, surpassing the previous record high of 23,476 points, set following the downturn caused by US President Trump's tariffs. Although only expecting a slight opening below the previous record, the index surpassed it, reaching an astounding 23,529 points.
Stock markets closed in the green on the day of the trade deal between the US and UK. The DAX closed 1% higher at 23,353 points, while US stock markets also showed positive but restrained reactions.
However, portfolio manager Thomas Altmann of QC Partners warned against getting carried away, pointing out that the starting point for this deal was different and simpler compared to future negotiations. The UK already had a trade surplus with the US, so it didn’t need to make as many concessions.
Taking the Spotlight
Several companies are under focus at the end of the week. Among them are Commerzbank and Krones. In early April, the DAX plummeted due to Trump's tariffs, but since then, it has gained around 27% in its strong recovery and is up 18% year-to-date.
Commerzbank, a significant German bank, has shown resilience in the face of economic challenges. However, specific recent performance data beyond a general 11.7% year-on-year increase in net profit to €834 million is not available.
Krones, the world's largest beverage filling equipment manufacturer, has operated in a sector sensitive to global economic conditions. Despite this sensitivity, the company is demonstrating resilience amidst growing economic uncertainty due to the threat of US tariffs.
Trade Tensions and Exports
The focus is on China's economy as well. Despite ongoing trade conflict with the US, China's April exports rose by 8.1% year-on-year, while imports only decreased by 0.2%. This contradicts expectations of a more significant slowdown in trade.
There's no rest for the weary as US, with annual meetings of defense giant Lockheed Martin and biopharmaceutical company AbbVie scheduled to raise attention in the US.
Source: ntv.de, chl/DJ/rts/dpa
[1] DAX Plummets Due to Tariffs Chaos in April 2025[2] Impact of Trump's Tariffs on the German Economy[3] Trade Policies: The Key to Germany's Economic Recovery[4] Q2 2025 Earnings Season and German Economic Outlook[5] Global Market Risks and Opportunities in 2025
- The community policy should address the impact of tariffs on employment, as the uptick in DAX, the leading German index, can be attributed to tariff relief and investor optimism.
- Employment policy must consider the potential effects of tariffs on various industries, including finance and business, given the significant role these sectors play in the economy and their sensitivity to global economic conditions.
- The current employment policy in the DAX-listed company, Commerzbank, should focus on maintaining resilience in the face of economic challenges, as it has already shown signs of strength in recovery after the tariff-induced downturn.
- Krones, another DAX-listed company, must continue to demonstrate resilience in an uncertain economic landscape, particularly amidst threats of US tariffs, to maintain its position as the world's largest manufacturer of beverage filling equipment.
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