DAX Recovery: Impact of SAP and Hopes for Tariff Dispute Resolution
On Wednesday, April 23, 2025, the DAX experienced a strong recovery, rising by 2.1 percent to 21,748 points, approaching the 22,000-point mark. This development was mainly influenced by two factors: the positive business results from SAP and hopes for a resolution in the tariff dispute between the USA and China.
1. SAP Business Results
SAP, a leading company in the DAX and an important economic indicator, presented strong business figures. The software company reported a significantly higher operating profit than analysts had expected, leading to a rise in SAP shares of over nine percent. This positive development has significantly supported the DAX, as SAP plays a major role in the German index as a heavyweight.
2. Hopes for Tariff Dispute Resolution
Another important factor for the recovery of the DAX was the hopes for a de-escalation in the tariff dispute between the USA and China. US President Donald Trump signaled during the swearing-in of the new SEC chief Paul Atkins that he does not want to engage in a hard-fought battle. Furthermore, White House spokeswoman Karoline Leavitt stated that the USA is making progress regarding a potential trade agreement with China. US Treasury Secretary Scott Bessent also indicated that a de-escalation in the tariff dispute was on the horizon. These developments have led to a positive sentiment in the markets, as a trade war would have significant economic repercussions.
3. Market Development and Relevance for Investors
The recovery of the DAX is of high relevance for investors in the German-speaking area, as it indicates a stabilization of economic conditions. The positive developments at SAP and hopes for a resolution in the tariff dispute have not only strengthened the DAX, but also pushed the MDax up by 0.9 percent to 27,521 points and the Eurozone leading index EuroStoxx 50 up by 1.9 percent. These market developments show that investors are reacting to positive signals from the economy, and market sentiment improves when there are signs of economic stabilization.
Overall, the recovery of the DAX reflects the market’s reaction to positive corporate results and political developments that are of great importance to investors in the German-speaking area.