On January 6, 2025, the DAX index rose by 1.3% to 20,165.13 points, recovering to its 21-day moving average. This increase is attributed to slightly receding concerns over US tariffs, as reported by the Washington Post, which indicates potential changes in tariff strategies under Donald Trump’s administration. Economists have warned that broad tariff increases could negatively impact the US economy by raising prices and inflation. [444f2008]
This latest rise follows the DAX's previous record high of 20,261 points achieved on December 4, 2024, driven by optimism surrounding potential interest rate cuts from the European Central Bank (ECB) and weak US services data. Despite grim factory order numbers and a contraction in the German Services PMI, the DAX had shown resilience, bouncing back from earlier fluctuations. [2481efcc]
In addition to the DAX's performance, the EuroStoxx 50 gained 1.8%, and the S&P 500 was also poised for gains, reflecting a broader positive sentiment in the European and US markets. The automotive sector continued to perform well, with shares of major companies like BMW and Mercedes-Benz contributing to the index's strength. [444f2008]
While the easing of US tariff concerns has provided a boost to the DAX, ongoing uncertainties remain, particularly regarding the potential impact of tariffs on the German economy. The German Economic Institute has forecasted modest growth of 0.1% for 2025, indicating that while the DAX is performing well, broader economic challenges persist. [2481efcc]
Looking ahead, market analysts are closely monitoring upcoming US labor market data and the Federal Reserve's Beige Book report for further insights into the economic landscape, which could influence the DAX and other global indices. [b1f42070]
Overall, the DAX's ability to recover and maintain momentum amidst fluctuating economic indicators highlights the complex interplay of domestic and international factors affecting investor confidence. [e78f14c0][308faced]