US-China Tariff Agreement and Its Impacts
The recent agreement in the tariff conflict between the USA and China marks a significant turning point for the global financial markets. Both sides have decided to reduce their mutual tariffs for an initial period of 90 days – a step that many market participants view as surprisingly positive. Before this agreement, trade between the two largest economies had effectively come to a standstill, which had significant negative impacts on the global economy.
Development of the DAX
The German benchmark index DAX responded to this news with a marked increase in share prices. On Monday, May 12, 2025, the DAX rose shortly after the start of trading to around 23,912 points and increased to approximately 23,790 points at noon, marking a rise of about 1.2 percent. The index is thus approaching the psychologically important mark of 24,000 points.
Since its low on April 7 (18,489 points), the DAX has recovered by more than 27 percent – an exceptionally strong rise in a short period. Since the beginning of the year, the increase has already exceeded 18 percent.
Reasons for the Price Increase
- Tariff Agreement USA-China: The reduction or suspension of punitive tariffs decreases uncertainty in global trade and improves prospects for export-oriented companies.
- Increased Risk Appetite: Investors are currently ignoring many risks and increasingly focusing on stocks.
- Positive Signals from Other Regions: Progress in peace negotiations between Russia/Ukraine as well as a ceasefire between India and Pakistan are viewed positively.
- Strong Performance Since the Beginning of the Year: The DAX has already surpassed four thousand-point marks this year; it is now facing the fifth jump.
Significance for Private Investors and Savers
Such developments are particularly relevant for private investors in the German-speaking region:
- Direct Impact on Portfolios: Many German funds and ETFs are heavily invested in the DAX; thus, gains in share prices directly benefit private savers.
- Adjusting Investment Strategies: The current market situation may lead to classic “safe havens” like gold or government bonds becoming less attractive – instead, interest in stock markets is rising.
- Volatility Remains High: Despite positive news, fluctuations can still be expected; diversifying one’s portfolio remains advisable.
Conclusion
The US-China tariff agreement is currently creating a significant positive sentiment in the German stock markets and driving the DAX towards a record mark of 24,000 points. For private investors, this means opportunities through gains in stock investments – but also an increased attention to further geopolitical developments is warranted.
“Both the USA and China are talking about a breakthrough in tariff talks,” commented capital market strategist Jürgen Molnar from Robomarkets.