Germany’s DAX surges to new highs on US-China trade announcement #NewsGerman

Germany’s leading stock market index, the DAX, climbed to new record levels on Monday, buoyed by news that the US and China had agreed to lower reciprocal tariffs following trade talks in Geneva.

The Frankfurt-based DAX reached 23,861.01 points on opening, a rise of 1.54% from Friday which saw the index surpass 23,500 points for the first time.

The latest surge in trading came as China and the US announced on Monday morning they had agreed to lower reciprocal tariffs for an initial period of 90 days. The first news of the deal came on Sunday.

Meanwhile, the EuroStoxx 50 index – composed of 50 stocks from 11 eurozone countries – was still trading slightly below its all-time high set in March, rising by 1.49% to 5,393.19 points on opening.

Germany’s second-tier MDAX, the index of medium-sized companies, rose by 1.10% to 30,056.18 points, a long way from the more than 36,000 points seen in 2021.

Possible upcoming negotiations between Russia and Ukraine on a potential peace deal were also viewed positively by investors, as was the ceasefire between India and Pakistan on the Asian stock exchanges, said portfolio manager Thomas Altmann from QC Partners.

At the beginning of April, the German stock market index plummeted to just under 18,490 points after US President Donald Trump announced sweeping blanket tariffs on almost all trading partners, including 145% levies on Chinese goods.

Beijing responded by imposing 125% tariffs on imports from the US.

These will be sharply reduced, according to Monday’s deal announcement.

Overall the DAX has gained almost 20% since the beginning of the year.