The markets have taken a clear positive turn this week and returned to an upward trend, evidenced by new record levels both in the USA and with the DAX. The DAX reached a new high of 24,480 points, after coming close to this value at the beginning of June and having increased by over 22 percent since the beginning of the year.
Factors for the Upward Trend
This development is supported by several factors: On the one hand, hope for a soon-to-be trade agreement between the EU and the USA has significantly improved investor sentiment. On the other hand, investors are shifting capital from the USA to Europe to avoid the uncertain tariff policy of the US government.
Records in the USA
In the USA, the stock markets are also celebrating new records despite existing uncertainties such as tariffs, interest rate concerns, and national debt. Indices like Nasdaq or S&P 500 continue to reach record highs. Investor sentiment is more positive than it has been for over a year – measured by the Fear and Greed Index, a peak value was reached around the US National Holiday on July 4th.
In summary, the record sentiment in the markets reflects that previously cautious investors are now increasingly investing again and have confidence in further developments. This leads to a broad rally in both the German leading index and key US stock indices.