Investors leave the US markets and massively reorient their portfolios to European funds, equities, and government bonds amid the announcement of US tariffs and subsequent turmoil in global markets.
Investors leave the US markets and massively reorient their portfolios to European funds, equities, and government bonds amid the announcement of US tariffs and subsequent turmoil in global markets.
European equities are on the rise to start the week as market participants are optimistic that the eurozone economy can withstand the adverse effects of US trade tariffs. Bloomberg believes an uptick in mergers and acquisitions (M&A) within the bloc is boosting the value of regional stocks.
Since the beginning of March 2025, the euro has risen by 9.35%. This is bad news for the EU’s export-driven economy. Companies in the STOXX 600 index generate 60% of their revenues from outside Europe, with half of that coming from the US.
The DAX index has been rising for the third consecutive trading session, catching up with its American and European counterparts and leveling off its previous losses. By the end of Thursday, it managed to reach the level of 22,069.
The US dollar's decline is negatively impacting the profitability of European companies in the Stoxx 600 index, as 60% of their sales come from abroad.
Investors leave the US markets and massively reorient their portfolios to European funds, equities, and government bonds amid the announcement of US tariffs and subsequent turmoil in global markets.
German stocks finished a shortened trading week in the red on Thursday. Losses in the Construction, Software, and Pharmaceuticals & Healthcare sectors led stock indices lower. At the close in Frankfurt, the DAX was down 0.53%.
As reported by TradingView, Germany's DAX index gained 0.27% on Wednesday ahead of the European Central Bank's (ECB) monetary policy meeting. The regulator is widely expected to cut its deposit rate by 25 basis points to 2.25%, with another similar move likely in June.
Market confidence in Germany’s economy fell sharply as US President Donald Trump’s tariff policies could weigh on a budding GDP recovery. The ZEW research institute’s investor expectations index plunged from 51.6 in March to -14 in April.
On Thursday, the European Union announced a 90-day pause before imposing trade countermeasures against the United States. Following this announcement, Germany's DAX stock index rose 4.67% by the close of trading in Frankfurt.
The German stock index DAX 40 rose rapidly on Thursday, gaining 8.37%. The unexpected US President Donald Trump's announcement of a 90-day suspension of new duties on imports from dozens of countries, including the European Union, contributed to this.
The DAX (Deutscher Aktienindex) Index is the main stock market indicator of Germany, which reflects the performance of the largest companies of the country. It represents 40 leading German corporations listed on the Frankfurt Stock Exchange. The financial instrument is considered to be a key gauge of the economic health in the Federal Republic of Germany and the Eurozone.
Major factors that determine the value of DAX:
A rise in the DAX indicates that investors are optimistic and confident, while a fall could be a warning sign of a potential recession or crisis.
This index is used for both long-term investing and short-term trading. To forecast its dynamics accurately, it is important to take into account macroeconomic statistics, corporate reporting, and global market trends.