DAX Reaches New Record High
The DAX reached a new record high of 24,346 points on Wednesday, June 4, 2025, closing with an increase of 0.8 percent at 24,276 points. This development is of great importance for private investors, savers, and small investors, as the DAX plays a central role in the German stock market.
Background and Factors
- Market Development: Despite weak US data, such as the ADP employment data and a disappointing ISM index for the non-manufacturing sector, the DAX remained unfazed and continued to rise. This indicates that investors are hoping for a loose monetary policy from the US Federal Reserve.
- Fiscal Package of the Federal Government: An important factor for the positive market development was the announcement of a fiscal package by the federal government, which includes tax cuts of 46 billion euros for companies. This is intended to boost the German economy.
- Trade Dispute between the USA and China: There are hopes that the trade dispute between the USA and China could be resolved through a summit meeting between the two presidents, which also positively influences the market.
- Expectations regarding the ECB Decision: The European Central Bank (ECB) is expected to lower interest rates by 25 basis points on Thursday, which also contributes to a positive sentiment.
Impact on Companies
Thyssenkrupp and Salzgitter: Despite the introduction of new US tariffs on steel and aluminum imports, the shares of these companies surged. Thyssenkrupp rose by 3 percent and Salzgitter by 2.1 percent.
Infineon: Following positive sector developments, Infineon increased by 4.2 percent.
Forecasts and Perspectives
The DAX has further potential for upward movement, and chart analysts even consider a rise above 26,000 points possible, as long as the index remains above its old breakout mark at 23,476 points. The overarching perspectives for the German leading index continue to look good.