The DAX, Germany’s most important stock index, has recovered in recent weeks from significant turbulence. This recovery is closely linked to a slight easing in the global trade dispute triggered by the U.S. government under President Donald Trump. Here are the key aspects of the current market situation:
DAX Recovery
- Price Fluctuations: At the beginning of April 2025, the DAX experienced a sharp decline, losing up to 11.75% of its value and falling to 18,489 points. However, there was a slight recovery that brought the index back above the 20,000 point mark.
- Technical Perspective: The recapture of the 200-day line at around 20,000 points is an important indicator for the long-term trend and offers an opportunity for stabilization.
- Future Outlook: Despite the recovery, uncertainty remains high, and sustainable stabilization is uncertain as markets are heavily dependent on political decisions.
Relaxation of Trade Dispute
- U.S. Tariff Policy: The U.S. government has temporarily reduced or suspended tariffs on certain electronics products such as smartphones, leading to a slight easing in the trade conflict.
- Market Reactions: These measures have triggered positive reactions in global stock markets, especially in Asia, where the stock exchanges in Shanghai and Hong Kong recorded significant gains.
- Long-Term Uncertainty: Despite this easing, uncertainty remains high as tariff policy continues to depend on political decisions and can change at any time.
Outlook for Investors and Savers
- Market Developments: Investors and savers should prepare for continued high volatility, as geopolitical events and political decisions can significantly influence markets.
- Strategic Adjustments: It is advisable to remain flexible and respond to changing market conditions. Diversifying the portfolio may help minimize risks.
- Earnings Season: The ongoing earnings season in the U.S. will provide further insights into the impact of the trade dispute on companies and could influence the markets.
In summary, the market situation remains tense, and investors should prepare for continued turbulent times. Although the slight easing in the trade dispute offers a short-term recovery, long-term stability depends on future political decisions.