The German stock market currently appears stable, which can be attributed to a slight easing in the global trade conflict. This development has positive effects on investor sentiment, especially before the Easter holiday. Here are some factors influencing this stability:
Factors for Stability in the German Stock Market
Easing in the Trade Conflict
Recent developments in the trade dispute between the USA and other countries have led to a temporary stabilization in the markets. The announcement of tariff pauses for certain countries has reduced recession risk and calmed the markets.
German Economy in a Turbulent Environment
Despite global uncertainties, the German economy remains stable, although it is affected by US trade policy. The federal government sees the economy in a turbulent environment, which has not led to a significant downturn.
Fiscal Package and Infrastructure Investments
The recently approved weapons and infrastructure package from the German federal government has strengthened European industrial companies and could support economic growth in the long term.
Value Stocks as a Stability Factor
Investors are seeking stability in value stocks, which have historically coped better with stress phases in the markets. This strategy has proven advantageous in recent months as it focuses on companies with solid fundamentals.
DAX Stability
The DAX has stabilized above the 19,300 points mark and even shows slight gains, indicating some relief in the markets.
Outlook
The stability of the German stock market could continue if the easing in the trade conflict persists and the economic policy measures in Germany show positive effects. Nevertheless, uncertainty remains high, and investors should continue to closely monitor developments. The coming weeks could be crucial for the stability of the global economy and the financial markets.