Stock exchange
DAX reaches record high
Anyone who rely on the DAX as an investor has driven well this year – very different from the US exchanges. Why despite all the crises the courses rise.
The DAX set another record on Tuesday. At the top he climbed to 24,161 points. Regardless of all uncertainties, the German leading index has an olus of around 21 percent in the current year, while the US exchanges are in the minus.
Investors look expectantly at the US stock markets, which were closed the evening before. Indications can also be expected in New York. This would make the relief that US President Donald Trump gave Europeans delayed to Europeans after his recent customs threat.
Armor shares achieve best values
Further in the focus also remained that there is no peace solution in sight in the Ukraine War. While the expansion of defense spending to five percent of the gross domestic product is discussed among the NATO countries, the record rally continued in armor values. Chancellor Friedrich Merz (CDU) announced the cancellation of the restrictions on the use of German weapons against Russian territory.
With Rheinmetall in the Dax and Renk and Hensoldt in the MDAX, the three known German armaments continued their good run with records. Rheinmetall were traded in early trade at up to 1,883 euros. In the meantime, they have already more than tripled in 2025 – in addition to the Rally, which had already started the Russian attack on the neighboring country in 2022. Based on this, they are worth more than 20 times.
Planned debt package awakens hope
From the perspective of analysts, the latest stock market upturn is based on a mixture of declining geopolitical tensions – especially in the customs context – solid quarterly reports and a touch of relaxation in the inflation data. In Germany, the planned state investment package also ensures confidence among stock marketers. A debt -financed pot of up to 500 billion euros is to be provided for infrastructure and climate protection.
The trade conflict between the USA and China, the two largest economies in the world, had burdened the financial markets for weeks. The concern of a global recession was great. However, experts warn of premature optimism. Because it is still open whether the trade between the USA and China is normalized.
Why the courses rise despite the crisis
The rally on the stock exchanges is in a strong contrast to the economic crisis in Germany. However, the views of the investors often do not focus on the current situation, but on future profits. In addition, the 40 corporations managed in the DAX are internationally established and make most of their sales abroad.
In Europe, shares have increased significantly more since the beginning of the year than in the USA – thanks to many good corporate numbers, the further stock -friendly interest rate policy of the European Central Bank (ECB) and the low ratings compared to US shares.
The stock exchange is also powered by the expectation to falling interest rates in the euro zone, with which the ECB wants to boost the weak economy. Inflation worries have recently decreased, many economists expect lower key interest rates in the coming months.
For stock investors, prospects for falling interest rates are good news. Shares then become more attractive compared to fixed -income papers. Loans are getting cheaper, so companies can finance themselves more easily and house builders are cheaper to loan. Overall, investments are becoming more affordable, which supports the economy.
dpa
Source: Stern
