Following the upward revision of the S&P 500 index target for 2025, Citigroup experts also shared their optimistic forecasts regarding the dynamics of European and global stocks.
Following the upward revision of the S&P 500 index target for 2025, Citigroup experts also shared their optimistic forecasts regarding the dynamics of European and global stocks.
The recent announcement of the US-China trade deal has helped European stock markets kick off the week on a positive note. Oil prices also held near a two-week high on Tuesday.
American stocks and the dollar rallied after China and the US reported major breakthroughs in two-day talks over the weekend aimed at easing trade tensions between the two countries.
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 benchmark DAX index fell 2.1% on Monday after Friedrich Merz failed to win the first parliamentary vote to confirm him as Germany's chancellor. German 10-year bond yields rose slightly, following their European counterparts.
Investor sentiment in the eurozone showed a stronger-than-expected rebound in May, recovering from the sharp decline caused by recent statements from US President Donald Trump regarding tariffs. Despite this improvement, the overall mood remains fragile.
Investors who shifted capital from the US to Europe now face a strengthening euro, which threatens European exports. Ironically, the once-stable European economic zone has created challenges similar to those in US 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.
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.