The German stock market remains optimistic after the DAX has surpassed the 21,000 point mark. This development is significant for investors as it reflects the current market sentiment and potential investment opportunities.
Background and Market Conditions
The DAX exceeded the 21,000 points mark on Tuesday and is currently around 21,133 to 21,180 points, which corresponds to an increase of about 0.85 to 1.08 percent. This upward trend continues after a strong start to the week, with the DAX having gained nearly three percent on Monday. The MDax of medium-sized companies also rose by about 1.62 to 1.91 percent.
Influencing Factors
The trade policy of the USA under President Donald Trump remains a central topic for investors. After the US government announced exemptions for certain electronics products, Trump also announced temporary tariff exemptions for auto manufacturers. At the same time, however, he plans to impose tariffs on pharmaceutical products that were previously exempt. This unpredictable policy keeps the markets on edge and affects investment decisions.
Investor and Company Reactions
The positive news about tariff exemptions has led to stock gains in certain sectors. In particular, the shares of automobile manufacturers such as BMW, Mercedes, Porsche, and Volkswagen rose by 1.9 to 3.3 percent. The auto supplier Continental also benefited with a stock increase of 3.2 percent. On the other hand, investors reacted to Beiersdorf’s sales figures with a slight decline in stock prices.
Global Market Reactions
The positive developments in the German stock market are also reflected in other global markets. Asian stock markets also rose, especially in Japan, where the Nikkei Index increased by 0.9 percent. In the USA, investors on Wall Street showed cautious optimism, with slight gains for the Dow Jones and the S&P 500.
Outlook
Despite the current positive developments, uncertainty remains due to the unpredictable US trade policy. Investors are looking for signs of stabilization in global trade relations to be able to make their investment decisions. The markets’ reactions to further political developments will continue to be closely monitored.