American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Here’s why the German DAX index is soaring today

by admin May 26, 2025
May 26, 2025
Here’s why the German DAX index is soaring today

The DAX Index surged on Monday, making it one of the best-performing indices in the market. It jumped by over 1.5% to a high of €24,000, a few points below its all-time high of €24,157. This article explains why the blue-chip German index rose and what to expect this week.

Why the DAX Index is soaring today

The German DAX index jumped after Donald Trump talked with Ursula von der Leyen on Sunday. In a statement afterwards, he said that they had agreed to pause the expected 50% tariff he had hinted at last Friday. The new tariffs will rise to 50% in July.

This statement is in line with what we predicted during the weekend. In that article, we noted that the 50% threat was a negotiating tactic as he did with China, when he implemented a 145% tariff. 

A 50% tariff would have blocked most trade from Europe. It would also have pushed many European companies to cancel their orders from the United States. Ryanair, the biggest airline in Europe, has already hinted that it would cancel its orders with Boeing if tariffs rose. 

There is also a likelihood that the trade relationship between the US and Europe will become better in the coming months. 

Most companies in the DAX Index rose on Monday. Siemens stock jumped by over 2.76% on Monday and was the best-performing firm. It was followed by Heidelberg Materials whose stock jumped by 2.63%.

Rheinmetall, MTU Aero, Airbus, Infineon, Siemens Energy, Commerzbank, and Continental stock prices rose by over 2%. 

Notably, these are some of the best-performing companies this year. Rheinmetall has jumped by almost 200% this year, while Commerzbank, Siemens Energy, Heidelberg Materials, and Deutsche Bank have all jumped by over 40% this year. 

The DAX Index also jumped as investors predicted that the European Central Bank (ECB) will cut interest rates in the next meeting. In a statement, the Lithuanian Central Bank governor said:

“I see scope for an interest-rate reduction. The risks that inflation will be below the goal in the future have increased.”

The next key catalysts for the DAX Index will be the upcoming NVIDIA earnings and Federal Reserve minutes. Strong NVIDIA numbers will be a sign that the AI industry is still doing well and that the bubble has not burst yet. 

While NVIDIA is an American company, its performance has an influence on European stock indices. Similarly, Federal Reserve minutes may impact the performance of global stocks.

DAX 40 Index analysis

DAX chart by TradingView

The daily chart shows that the German DAX Index has risen to a record high this year. It formed a hammer candlestick pattern on Friday after Trump warned of tariffs to Europe.

The reality, however, the index has done well since Trump launched his trade war a few months ago. It has remained above the 50-day and 100-day Exponential Moving Averages, a sign that bulls are in control.

Therefore, the index will likely continue rising as bulls target the key resistance point at 24,500. A drop below the support at 23,400 will invalidate the bullish outlook.

The post Here’s why the German DAX index is soaring today appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Top 4 catalysts for the Dow Jones and S&P 500 this week
next post
Crypto price predictions: Pepe, Sui, Zebec Network

Related Posts

Marvel Discovery Acquires Strategic Ground In Elliot Lake,...

May 24, 2024

Ramp Metals Provides Exploration Update and Announces Drilling...

March 29, 2024

FTSE 100 index shares to watch: Shell, BP,...

October 25, 2024

Shiba Inu price analysis: Here’s why SHIB is...

December 5, 2024

CrowdStrike stock could dive in 2025 despite strong...

December 29, 2024

USD/ZAR forecast: here’s why South African rand just...

April 3, 2025

Is it safe to buy the post-earnings dip...

May 23, 2025

Here’s why Hong Kong’s Hang Seng Index is...

May 31, 2025

GBP/USD forecast ahead of BoE interest rate decision

January 31, 2025

IAG share price has crashed: to get worse...

March 20, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,573)
    • Investing (2,700)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved