The DAX gained 0.8 percent on Friday, April 25, 2025, closing at around 22,242.5 points, marking the fourth consecutive day of gains. This development is part of a broader recovery movement driven by several factors.
Background and Causes of the Recovery
US-China Trade Relations
Hopes for a thaw in the trade dispute between the US and China have positively influenced the markets. Reports of potential tariff reductions and a more conciliatory stance from President Trump toward China have eased concerns about a global trade war.
Solid Corporate Earnings
Strong quarterly results from European companies have also contributed to the gains. Companies like Aero Engines, Brenntag, and Heidelberg Materials have performed particularly well.
Technical Analysis
The DAX has largely compensated for its recent losses since ‘Panic Monday’ on April 7, showing a V-shaped recovery. However, chart analysts see challenges in overcoming key resistances like the 50-day line and the demolition edge at around 22,226 points.
Current Market Situation and Forecasts
The DAX closed on Friday at around 22,242.5 points, representing another signal of strength.
The VDAX-New, an indicator of volatility in the DAX, stood at 24.88% and shows a slightly declining trend, indicating a degree of stability in the market.
Key resistances above are at around 22,147, 22,320, 22,573, and 22,740 points. Relevant supports below are at around 21,724, 21,513, 21,296, and 21,315 points.
Overall, the DAX shows a robust recovery, supported by political easing and solid corporate results. Nevertheless, the upside potential remains limited as significant technical hurdles need to be overcome.