DAX Recovery and ECB Rate Decision in Focus
The DAX shows upward trends on Friday after a sluggish start and is approaching its record high. This development is particularly relevant as the market and investors await the upcoming interest rate decision of the European Central Bank (ECB), which could have significant impacts on the financial markets.
Current DAX Development
- Year-to-date Performance: The DAX has recovered by about 20.62% since the beginning of the year 2025, reaching a yearly high of 24,325.97 points.
- Weekly Performance: In the current week, the DAX has increased by about 0.6%.
- Daily Performance: On Friday, the DAX rose by 0.92% to 24,153.44 points after trading at 23,963.49 points at the start of the session.
ECB Rate Decision
The ECB Council meeting next week is in focus for investors, as the decision regarding potential interest rate hikes or cuts could have significant effects on the European financial markets. This decision will also be influenced by current inflation data which will be released in the coming days.
Inflation Data and Market Uncertainty
- Inflation Data: The release of inflation data from the federal states and the overall German price data is crucial for the ECB Council meeting.
- Market Uncertainty: In addition to the ECB decision, trade policy uncertainty, particularly due to the unclear tariff policy of the USA, contributes to increased volatility in the markets.
Volatility and Market Sentiment
The VDAX-New, an indicator of volatility in the DAX, stood at 20.47% on May 28, 2025, indicating a slight downward trend. This volatility can change if the VDAX-New falls from high values or rises from low values.
In summary, the DAX shows upward trends after a weak start on Friday while investors await the ECB rate decision. The release of inflation data and trade policy uncertainty contribute to the tension in the markets.