The global stock markets are currently on the verge of a new all-time high, supported by various factors. Here are some of the key developments and forecasts:
Global Stock Markets
- Record Proximity: The MSCI All Country World Index, a key indicator for the global stock market, is only 0.5% below its record closing level of 887.72 from February 18, 2025. This index has recovered by 19% since its low in April, which was impacted by tariff announcements from US President Donald Trump.
- Forecasts: Analysts expect another upward trend due to buying activities at price declines. The temporary suspension of most tariffs for US trading partners has strengthened risk appetite, as investors capitalize on market dips. The global stock index MSCI is expected to rise by about 11% over the next twelve months.
Regional Markets
- German Stock Market (DAX): The DAX has also approached its record high of nearly 24,326 points and is currently around 24,300 points. Positive news such as tax reduction plans in Germany and clear gains in US markets support the market.
- European and U.S. Markets: Similar trends are seen in other European markets, with markets responding to positive news and turning away from negative developments such as the tariff dispute between the US and the EU as well as China.
Challenges and Opportunities
- Tariff Dispute: Despite the positive developments, the tariff dispute between the US and its trading partners remains a factor of uncertainty. However, a compromise could lead to a further increase in stock prices.
- Investor Behavior: Many investors are looking for potential corrections to invest in the market, which supports the demand for stocks.
Overall, global stock markets are on the cusp of a potential all-time high, supported by buying activities and strengthened risk appetite. Despite the challenges posed by the tariff dispute, positive economic news and political developments offer further upside potential.