Positive Impulses from SAP and Trade Developments
On Wednesday, April 23, 2025, the Frankfurt Stock Exchange experienced a significant recovery rally, particularly triggered by positive developments from SAP and emerging hopes in the trade dispute between the US and China.
The DAX was able to gain a remarkable 2.1 percent, reaching about 21,748 points. This increase brings the index close to the psychologically important mark of 22,000 points. Earlier in April, a market crash caused by the then-current US customs policy had broken through this level.
Strong Numbers from SAP
The software company SAP was primarily responsible for the uplift. Thanks to impressively positive business figures, SAP was able to increase its operational profit, which drove the stock up by over nine percent.
Signs of Easing in the Trade Conflict
Additionally, optimistic signals in the historic trade conflict between the US and China created a positive climate. US President Trump indicated that he, along with the new head of the stock market regulator Paul Atkins, wanted to take a less confrontational approach. Progress in negotiations for a trade agreement between the two nations has been reported.
US Treasury Secretary Scott Bessent also expressed the prospect of a soon de-escalation of the conflict, which brought further confidence to the markets.
Broad Market Recovery
The positive trend was not limited to the DAX alone. The MDAX also rose by nearly one percent to over 27,500 points, while the EuroStoxx 50 was able to gain almost two percent. This broad recovery shows the increased confidence of investors in the development of the European stock markets.
Overall, the German stock market experienced a recovery on Wednesday after a period of uncertainty marked by American interest rate concerns and trade policy tensions. Particularly, SAP acted as a leading stock, and the hope for progress in the customs dispute fostered the incentive to buy.