Impact of the US-China Tariff Agreement on the DAX
- The negotiations between the USA and China in Switzerland led to progress in reducing tariffs, with the USA retracting plans to impose tariffs of up to 145 percent on imports from China. This significantly alleviates the previously heavily burdensome trade conflicts.
- This development is seen as very important for the global economy, as the trade volume between both countries is enormous.
- The positive sentiment from this agreement has led investors to temporarily ignore risks such as potential economic burdens or forecast adjustments from many companies, and they are increasing their purchases.
Current Market Development of the DAX
- The DAX has gained over 18 percent since the beginning of the year and has been able to overcome several thousand-point marks; a leap above 24,000 points would already be the fifth such mark in a short time.
- Technically speaking, the index is currently holding above important support levels (e.g., 23,450 points), which sends bullish signals in the short term; however, a possible short-term consolidation or pullback cannot be ruled out.
- Analysts see further potential for a sustainable rise to the 24,000-point mark or beyond if macroeconomic conditions continue to improve and supportive monetary policy from the European Central Bank is maintained.
Opportunities for Private Investors
The easing in the trade dispute offers private investors interesting entry opportunities:
- The recovery of the DAX shows a robust market sentiment despite existing uncertainties.
- Psychologically important levels like 24,000 points can serve as benchmarks for purchase decisions.
- A diversified investment in German blue-chip stocks could benefit from the positive environment.
At the same time, investors should remain attentive to potential volatility due to geopolitical developments or monetary policy decisions (e.g., US FOMC meeting).
In summary, the US-China Tariff Agreement acts as a catalyst for a strong rally in the German benchmark index DAX, which is now approaching the level of 24,000 points – a signal with potentially attractive investment opportunities for private investors given improved global trade prospects and stable European economic data.