DAX on the rise: positive mood and exciting economic data!

DAX on the rise: positive mood and exciting economic data!

On May 16, 2025, the DAX shows a positive trend in early trading and benefits from general optimism in the markets. The improvement is part of a broader trend, as the EuroStoxx 50 is also trending moderately upwards. US markets, particularly the Nasdaq 100, are also seeing a boost. Experts report upcoming important economic dates that could move the markets in the coming hours. These include April U.S. housing starts and preliminary building permits, as well as the University of Michigan consumer sentiment results for May, both released at 2:30 p.m. and 4 p.m.

Bayer AG is experiencing an upswing as the stock temporarily rises 2.3% above the previous day's close. This follows a report on progress in a legal process to mitigate glyphosate lawsuits. In contrast, E.ON SE shares are at a significant discount, which is due to media reports about a possible adjustment of the dividend policy due to rising investment costs. Tesla Inc., on the other hand, is registering strong momentum, including through increased volume in call contracts, as many options expire on Friday and investors are hoping for price gains.

Market development and forecasts

Despite the positive trends on the markets, Tobias Vogel, CEO of UBS Europe, predicts a year full of challenges for the stock markets in Europe. Both the DAX and the EuroStoxx 50 have made notable gains since the beginning of 2023, with more than 40% and almost 30%, respectively. Still, experts highlight some risks, particularly the impact of continued “America First” policies under Donald Trump, which could pose potential trade barriers.

In addition, the economic situation in China, which has remained weak since the corona pandemic, poses challenges. There is even greater hope for a more active fiscal policy from China in December. In Europe, early federal elections following a possible traffic light shutdown could have an impact on economic forecasts. The political crisis in France following the fall of Prime Minister Michel Barnier also raises questions, while experts warn of possible euro debt crises, but these are considered exaggerated.

Market developments and specific stocks

Berenberg Bank and DZ Bank give mixed forecasts for the DAX and the EuroStoxx 50. Berenberg Bank sees the DAX at 22,000 points, while DZ Bank sees the same index at 21,500 points. Both institutes expect a volatile sideways movement until the middle of the year. The DAX trend channel remains intact, which is confirmed by the chart technology.

Certain leverage products are particularly in demand on the European Warrant Exchange. At a glance, the most popular products are as follows:

In addition, the warrants are becoming more important, both on the DAX and on other companies. An example is the DAX® call UG2LS2 with an ask price of EUR 4.37, while the Netflix call UG2BUC is quoted at EUR 2.54.

Overall, the outlook for the markets is mixed. While investors could benefit from the current development of share prices, the long-term potential for the DAX and the EuroStoxx 50 remains questionable after a two-year rally given global challenges and political uncertainties. How finance.net and boerse-frankfurt.de report, the market situation remains exciting.