DAX remains strong: Investors optimistic despite global uncertainties!

DAX remains strong: Investors optimistic despite global uncertainties!

This Friday, the DAX remains at record levels. The index currently stands at 23,870 points, which corresponds to an increase of 0.74 percent. This shows positive investor sentiment, which is supported above all by the easing of the tariff dispute between China and the USA. The MDAX also recorded an increase of 0.54 percent and is now at 29,987 points, while the EuroStoxx 50 rose by 0.56 percent to 5,442 points. The DAX is heading for its fifth positive trading week in a row and has achieved an increase of around 20 percent since the beginning of the year, while the Dow Jones Industrial remains in negative territory.

In this context, negotiations about a possible end to the war in Ukraine begin today, which raises additional hope for stability on the markets. United Internet has announced that it will acquire more shares in 1&1 and is offering 18.50 euros per share. This has already led to an 18.6 percent increase in the price of 1&1 shares, while United Internet shares have increased by almost seven percent. Bayer shares are also rising by around three percent as the company examines legal proceedings to handle glyphosate damage claims in the USA.

Market developments and concerns

Despite the positive development of the DAX, there are also economic concerns on the stock markets, especially in view of US President Trump's current statements, which are fueling fears of an expansion of the tariff dispute with other trading partners. The Dow Jones index lost 1.3 percent to 40,813 points, the S&P 500 fell 1.39 percent to 5,521 points and the Nasdaq index fell 1.89 percent to 19,225 points. Peter Andersen of Andersen Capital Management notes that the inconsistent guidance from the White House is unsettling investors.

Trump recently announced that he would impose a 200 percent tariff on European drinks imports if the EU does not eliminate markups on American whiskey. These developments are leading to growing uncertainty among investors, as experts from Index-Radar point out that political uncertainties are affecting planning security for companies.

Other worrisome news includes the possibility of a shutdown in the US if Democrats do not agree to negotiate an interim budget. In addition, the DAX remains behind its record high and has fallen by almost four percent in the last few days. Analyst Jochen Stanzl comments: “The wind on the stock market has changed.” Concerns about an escalating trade conflict, the Ukraine conflict and political uncertainty in Germany are weighing on the markets.

Industry-specific developments

Despite the general market situation, some sectors are showing notable developments. The defense sector, particularly RENK, is benefiting from positive market sentiment, with RENK shares up 8.5 percent after JPMorgan upgraded the shares to Overweight. In addition, the Borussia Dortmund share exceeds the 4 euro mark with a price increase of two percent.

Some DAX stocks are currently trading ex-dividend, resulting in optical discounts, including companies such as Eon, Heidelberg Materials, adidas and Commerzbank. Overall, the mood on the markets remains ambivalent, with some areas showing excellent performance and others facing challenges.