On Tuesday, European stocks rose as defense sector shares gained after the US administration suspended plans to impose 50% tariffs on imports from the EU. In Germany, the DAX 40 closed the trading session at an all-time high, up 0.8% to 24,316.5.
European stocks are outperforming US markets as transatlantic trade tensions grow, boosting the region's appeal to investors. The DAX 40 has surged 13% year-to-date, outpacing the volatile S&P 500 amid tariff concerns.
Major asset managers, including Europe's Amundi, plan to scale back euro-long positions and reduce bullish bets on EU equities, Reuters reports. The move follows retaliatory US import tariffs imposed on the region in early April.
The DAX index on the Frankfurt Stock Exchange fell more than 1.5% on Thursday, dropping below 22,900 points. The main pressure on the market came from automakers’ shares, which declined after American President Donald Trump announced a plan to impose 25% duties on imported cars.
European markets closed higher on Tuesday as investors were relatively optimistic about US President Donald Trump's trade policies. The German stock index DAX topped the regional gains, climbing by 1.13%. Such a rise was driven by improved business sentiment in the country, CNBC reports.
The DAX 40 began Tuesday's trading session up 0.69%, ignoring the release of German business confidence data. Despite positive expectations, the Ifo Business Climate Index for March was only moderately higher than the previous month's reading — 86.7 vs. 85.3.
In the middle of this week, European stock markets were showing mixed dynamics while investors were assessing reforms in Germany and waiting for central banks' decisions on monetary policy. Meanwhile, Germany's DAX index broke a three-day winning streak.
The German index DAX is declining on Wednesday after rising by 0.98% the day before. The latest positive dynamics was due to the expected important vote on the Germany’s debt brake reform.
The European stock market started the week on a positive note. The German DAX index showed the best dynamics, rising by 0.34%. Meanwhile, the broader Stoxx 600 index gained 0.21%, according to ShareCast.
On Friday, the Frankfurt DAX fluctuated within a narrow range but maintained an upward trend. Traders remain cautiously optimistic despite a challenging market environment.
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.
