Germany's DAX index hit a historic high, surpassing its March peak to reach 23,795.5 points. This rally came despite US President Donald Trump's statement about potential 80% tariffs on Chinese goods, which triggered temporary market corrections, Bloomberg notes.
The key growth driver was positive economic data from Germany, coinciding with European Central Bank signals about potential rate cuts, notes Claudia Panseri of UBS Wealth Management. These factors strengthened following Germany's economic stimulus reforms, making German stocks markedly more attractive to investors.
Political uncertainty surrounding Friedrich Merz's coalition government formation, which survived a failed first vote attempt, had limited market impact, Bloomberg reports. According to RBC BlueBay's Mark Dowding, the incident should be viewed as a temporary setback. The expert insists that expectations of substantial fiscal stimulus measures continue to support investor optimism.