German stocks reached the record as commercial optimism rotates in the markets

Unlock Free

Roula Khalaf, publisher of the FT, selects her favorite stories in this weekly newsletter.

The German Dax Index increased on Friday to a maximum record, as investors’ optimism on North -American trade agreements increased world markets, becoming the first major European reference point to recover the losses caused by Donald Trump’s tariff threats.

The index was 0.7 percent higher in the morning negotiation, after Thursday’s Thursday’s announcement a United States trade agreement in the United Kingdom, followed by a call between Trump and the new Chancellor of Germany, Friedrich Merz, in which they agreed to quickly resolve commercial disputes.

The return of Dax to the highs of all time also reflects the wave of enthusiasm for German actions Merz’s plans led to the early year of the year to increase loans and inject hundreds of billions to military infrastructure and the country’s infrastructure.

Emmanuel Cau, head of Barclays’s European Equity Strategy, said that the commercial news had given a wide moment to the stock market markets. However, he added that “there is an additional degree of excitement in Germany as part of this revival narrative and the arrival of the new government,” he said. “There is more and more interest in Germany.”

European actions have passed their Wall Street colleagues this year due to optimism for defense spending combined with growing fears of impact on the US economy of Trump’s trade war.

Dax has increased almost 18 percent to date. Although American actions have also regained their losses since Trump’s “Liberation Day” ads in early April, the S&P 500 benchmarks remains below February and has dropped almost 4 percent until 2025.

This has partially reduced a valuation gap between the United States and the European actions that has been expanded in recent years due to a relentless manifestation in the technological stocks of the United States.