Recovery Rally in Frankfurt: SAP and Hopes for Customs Dispute De-escalation
On Wednesday, a recovery was evident in Frankfurt’s markets, driven by positive developments at SAP and hopes for de-escalation in the customs dispute between the USA and China. This recovery could be of particular interest to investors as it influences both market development and corporate news.
SAP: Strong Business Figures
A key factor for the recovery was the software company SAP, which presented strong business figures. The operating profit was significantly above analysts’ expectations, which supported the DAX in pre-market trading. These positive news from the technology sector helped to strengthen investor confidence and support the index.
Customs Dispute Hope
Another significant factor was the hope for de-escalation in the customs dispute between the USA and China. US President Donald Trump signaled during the inauguration of the new stock market regulator Paul Atkins that he did not want to fight hard. Additionally, White House spokesperson Karoline Leavitt stated that the USA was making progress regarding a potential trade agreement with China. US Treasury Secretary Scott Bessent also suggested a de-escalation soon. These signals led to improved sentiment in the markets and contributed to the recovery.
Market Development and Investor Interest
The combination of SAP’s strong figures and positive signals in the customs dispute has resulted in a recovery rally in the DAX, which is approaching the 22,000-point mark. This development could be interesting for investors as it indicates a stabilization of global trade relations and strengthens confidence in the markets. Market observers like Stephen Innes referred to a ‘art of the deal’ that enters the discussion and emphasized that the recent price gains represent a ‘panic in the opposite direction’.
Outlook
Overall, this recovery rally could be a positive signal for investors as it suggests an improved market situation and potentially more stable trade relations. However, it remains important to closely monitor further developments in the customs dispute and the economic policy measures of the USA and China in order to make long-term investment decisions.