The overall outlook for the German stock market has improved, with the DAX climbing back to levels last seen in mid-January. However, experts warn it’s still too early to speak of a lasting trend reversal.
After experiencing a sharp decline since early April, Germany’s leading index, the DAX, is now working its way toward a new recent high. By midday on Tuesday, the index had risen by 1.3%, reaching up to 21,286 points.
This recovery comes after a steep drop triggered by sweeping tariff plans announced by U.S. President Donald Trump. The DAX had temporarily plunged from 22,500 points to 18,490—the lowest point since last autumn—under pressure from heightened uncertainty that spooked investors into selling.
In recent days, however, market sentiment has brightened. The DAX has returned to levels last recorded in mid-January. Last week, the index even climbed above 21,300 points before retreating slightly due to profit-taking.
Still, the short- and medium-term performance indicates there’s no clear upward or downward trend in place. Analysts emphasize that the market hasn’t entered a sustained movement in either direction, and a full reversal is not yet on the horizon. Every new development in the ongoing trade dispute between the U.S. and the rest of the world continues to stir noticeable fluctuations in global markets.
On a more positive note, tensions in the trade conflict have not escalated further since the end of last week. That relative calm has helped lift the DAX, along with major indexes in Asia and the U.S., as the new trading week began.