Deutsche Bank Benefits from Market Recovery
The Deutsche Bank is currently experiencing a significant upswing, primarily driven by the recovery movement in the US stock markets. This positive development provides a noticeable boost for German stocks and makes the Deutsche Bank share particularly attractive.
Reasons for the Boost
- Market Recovery after April Lows: Financial stocks were severely impacted in April 2025 but have seen a significant increase with the current market recovery. The Deutsche Bank share rose by about 3.8% and is now around €18.60.
- Beneficiary of Cyclical Stocks: As a cyclically sensitive stock, Deutsche Bank particularly benefits from the positive market developments.
- Reduced Credit Risk: By reducing risky loans, the bank has lowered its credit risk. However, the risk of indirect effects from trade conflicts, such as US tariffs, on earnings persists.
- Situation of Subsidiary DWS: The fund subsidiary DWS suffered losses due to market declines. A permanently lower managed asset volume could lead to reduced earnings and dividends, which could burden the parent company. However, a short-term market recovery can mitigate this risk.
Summary
The positive development in international markets, especially in the USA, currently brings an upswing in German stocks, particularly for Deutsche Bank. Despite challenges such as trade tariffs and earnings risks at subsidiaries, optimism prevails due to the strong market environment and the improved risk position of the bank.