Background of the tariff suspension
On April 10, 2025, the DAX experienced an impressive price jump, triggered by the surprising decision of US President Donald Trump to temporarily suspend special tariffs for several countries. This measure led to a global stock market recovery, affecting not only the DAX but also other key indices such as the Dow Jones, S&P 500, and Nasdaq.
Trump had previously enforced a tough tariff policy that led to significant market volatility. The sudden turnaround, which entails a 90-day pause on tariffs for many countries, was seen as an opportunity for negotiations. However, tariffs on Chinese imports remain in place, continuing to sustain tensions between the US and China.
Impact on the DAX
The DAX opened on Thursday with a strong price jump and during the day reached an increase of about 8.2% to 21,291.15 points. This recovery was enhanced by positive signals from the US, where the Dow Jones rose by 7.9% and the S&P 500 by 9.5%. Individual stocks like Infineon, operating in the semiconductor sector, experienced double-digit gains.
Technical Analysis
In the days leading up to the tariff suspension, the DAX had a weak opening and fluctuated within a daily range of 19,384 to 20,025 points. Following the announcement of the tariff pause, analysts expected a strong wave of recovery that could push the index beyond the important 200-day moving average line. Next resistances are at 20,800-21,070 points, while supports exist at 20,025, 19,599, and 19,384 points.
Global Market Reactions
The global stock market reaction was predominantly positive. The Nikkei index in Tokyo rose by about 8.6%, while in South Korea, prices increased by 5.7%. In China and Hong Kong, gains were more moderate due to the increased tariffs on Chinese imports. Oil prices also surged, indicating heightened demand and uncertainties in the energy sector.
Outlook and Challenges
Despite the current recovery, uncertainty remains as the tariffs could be reinstated in 90 days. This could prevent companies from making long-term plans. Additionally, the conflict with China continues to escalate, straining trade relations. Investors need to brace for a more volatile market environment and keep an eye on further developments.
Conclusion
The provisional suspension of US tariffs has significantly impacted the DAX and other global markets. While the short-term effects are positive, long-term uncertainty persists. Investors should focus on potential further negotiations and their outcomes to adjust their investment strategies accordingly.