Germany’s DAX cracks 22,000 points for the first time amid record run #NewsGerman

Germany’s leading stock market index, the DAX, passed 22,000 points for the first time on Tuesday.

The index hit a record high of 22,046 before dropping again to 22,038 at the close of trading – an increase of 0.58%.

The record run came despite fears of an escalating trade conflict after US President Donald Trump announced tariffs of up to 25% on steel and aluminium imports.

The DAX measures the performance of 40 leading German companies on the Frankfurt Stock Exchange.

Germany’s top index has performed very well in recent months, topping the symbolic figure of 20,000 points for the first time in early December and recovering from a brief fall following the emergence of China’s DeepSeek artificial intelligence start-up.

The DAX has now gained almost 11% since the start of the year, having recorded growth of 19% over 2024.

Traders appear to be calling Trump’s bluff on tariffs, after he suspended planned duties on Canadian and Mexican goods earlier this month shortly before they were due to take effect.

“Tariff threats from the White House have lost their shock value, investors seem to have grown accustomed to them,” said capital market strategist Jürgen Molnar from trading house Robomarkets.

Investors are also expecting further rate cuts from the European Central Bank, with inflation worries having eased.

Developments on the stock markets continue to stand in stark contrast to the poor economic situation in Germany, which has seen two consecutive years of recession.

The second-tier MDAX on Tuesday saw a decline by 0.14% to 27,246 points, while the eurozone’s leading index, EURO STOXX 50 inched up.