The recent ceasefire in the tariff conflict between the USA and China has sparked optimism in the German stock market. Both countries have agreed to drastically reduce their mutual tariffs for an initial period of 90 days: The USA will reduce tariffs on Chinese goods from 145 percent to 30 percent, while China will lower its tariffs on US goods from 125 percent to 10 percent. This measure creates room for further negotiations and could initiate a sustainable easing of the trade dispute.
A New Momentum for the DAX
In direct response to this positive news, the DAX recorded a significant increase on Monday morning, reaching a new record high of about 23,912 points. This corresponds to an increase of up to 1.8 percent. The psychologically important mark of 24,000 points is now within reach. This rise in share price reflects the optimistic mood among investors, which is fueled by the prospect of more relaxed global trade relations.
Investor Optimism
The significant reduction in tariff rates indicates a possible stabilization of global trade relations. Investors see this as an opportunity, particularly for export-oriented markets like Germany. The current optimism in the markets shows that political measures can have strong impacts on indices like the DAX.
- The USA and China have lowered their tariff rates by a total of about 115 percentage points.
- The agreement is initially valid for 90 days.
- The DAX responded with a strong price increase and is approaching the 24,000-point mark.
- Investors are optimistic due to the improved trade prospects.