The party continues in the DAX
The DAX's new record high is now at 23,912 points. The DAX's next stop should therefore bring the next record high to 24,000 points, but it happened as it often does. Donald Trump and his negotiating team were able to reach an agreement with China. The market often reacts to such news by selling the facts. This means that the market has already priced it in and, when the fact materializes, profits are taken off the table. The same thing happened in the DAX after the index reached its new record high. Therefore, the DAX had to give back some of its losses after its record run, but was still able to close in profit. But that doesn't mean the stock markets will collapse now; on the contrary, it can be expected that the market will resume its trend direction with this positive news.
Is the war in Ukraine coming to an end?
This week, the world awaits a possible meeting between Ukrainian President Zelensky and Russian President Putin on the other side. Assuming this meeting takes place, can the two presidents really agree on a lasting ceasefire? The goals of the two protagonists appear too different. Regarding the markets, the question arises as to the extent to which the market has priced in a potential ceasefire. Otherwise, a scenario like today's threatens to unfold, where the facts are sold out, to the surprise of many market participants.
Technology Stocks Benefit from US-China Deal
Among individual stocks, it was Infineon shares that attracted attention with a gain of over 8%. Consequently, the stock's daily gain was not to be denied. The US deal with China has already had an impact, especially on technology stocks. Tech stocks, especially in the microchip sector, rose sharply. Infineon shares also benefited from this.
In summary, the stock markets are likely poised for another rally. Donald Trump's plan appears to be working perfectly, both in terms of tariffs and on a geopolitical level. The markets are beginning to reward this after a dive.
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