Recovery of the German Stock Market After Turbulent Trading Days
After a series of turbulent trading days, the German stock market is showing signs of recovery. This development is supported by various economic factors that are of great importance to investors.
Current Market Development
- DAX Development: The DAX, the leading index of the German stock market, has significantly recovered in the last trading days. After a strong start to the week, the DAX rose by 1.4 percent on Tuesday, closing at 21,254 points. This follows a strong increase on Monday when the index gained almost three percent.
- MDax and SDax: The MDax, the index of medium-sized companies, also showed a strong recovery, rising by 2.4 percent to 27,266 points. The SDax saw mixed developments, with PVA Tepla being the biggest winner with a 14.1 percent increase, while Salzgitter recorded significant losses.
Economic Factors
- Trade Dispute and Trade Policy: The recent turbulence in the stock market was significantly triggered by the trade policy of the US under President Donald Trump. Trump’s announcement of tariffs on almost all countries worldwide led to significant losses in the markets. However, a temporary easing in the trade dispute has led to a recovery of the markets.
- Economic Data and Sentiment: The economic expectations of German financial experts deteriorated in April, attributed to the uncertainty in the trade dispute. Nonetheless, there are signs of gradual stabilization, supported by positive economic indicators.
Outlook
- Long-Term Perspective: Historically, stock markets have always recovered after major downturns, even though this can sometimes take years. Therefore, investors should remain invested in the long term to benefit from future recoveries.
- Current Challenges: The ongoing uncertainty in global trade policy remains a risk for the markets. A sustainable recovery depends on the development of the geopolitical situation and the economic fundamentals.
Overall, the German stock market is on a recovery path, but uncertainty persists due to global trade policy. Investors should pay attention to long-term trends and rely on stable economic indicators.