DAX Reaches All-Time High, Closes At 23,419
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The DAX surged more than 1.47% on Thursday, reaching an all-time high of 23,419 and extending its gains from the previous session.
This rally was fuelled by a combination of corporate performance and geopolitical developments.
Investors welcomed the Trump administration’s decision to suspend car import duties from Canada and Mexico for one month, easing concerns about escalating trade costs and supply chain disruptions.
The move also sparked optimism that similar exemptions could be extended to other products, further supporting market confidence.
Auto companies were among the top performers, with shares rising between 2.7% and 5%. This sector benefited from both the tariff suspension and broader investor optimism.
Deutsche Post surged nearly 12% after unveiling a €1 billion cost-cutting plan aimed at improving efficiency and profitability.
Lufthansa also gained 7% as it forecast a rebound in profits for the year, driven by recovering demand in the aviation sector.
E-commerce giant Zalando reported solid financial results for fiscal year 2024, with both revenue and profits showing significant growth, further boosting market sentiment.
Traders closely monitored the ECB’s policy decision, which delivered a sixth consecutive rate cut.
The central bank’s move to lower key interest rates by 25 basis points reflects its assessment that inflation is on track to stabilise around its 2% target.
The DAX’s record-breaking performance underscores the resilience of German equities amid a complex global landscape.
While corporate earnings and tariff relief provided immediate catalysts, the ECB’s accommodative monetary policy has also played a crucial role in supporting investor confidence.
However, challenges remain, including persistent inflationary pressures, geopolitical tensions, and the potential for further trade disruptions.
The DAX’s rally highlights the interplay between corporate performance, policy decisions, and global developments in shaping market dynamics.
As investors navigate these factors, the coming weeks will be critical in determining whether the index can sustain its upward trajectory.
Sources: Trading Economics, MarketScreener