DAX index surges more than 30% amid US trade policy uncertainty — Bloomberg

Germany’s DAX index has risen more than 30% in dollar terms, Bloomberg reports. European stocks are dominating global markets, claiming eight of the world's top ten performing indices. This trend is partly driven by President Donald Trump's unpredictable trade policies, which are negatively impacting US markets.

The pan-European Stoxx 600 index is outperforming the S&P 500 by about 18 percentage points. Bloomberg analysts say the rally is underpinned by Germany’s plans for higher fiscal spending and a stronger euro. They expect further gains, citing solid corporate earnings and attractive bank valuations.

UBS projects that investors could channel roughly €1.2 trillion ($1.4 trillion) into European equities over the next five years as capital shifts away from the United States. Citigroup adds that Berlin’s proposals for large-scale infrastructure and defense spending have already improved growth prospects for the euro-area economy.