Optimism surrounding trade negotiations with the US and a strong US stock market caused the DAX to literally explode in after-hours trading, following a positive day driven by Asian markets.
The closing price was recently set at 24,240.82 points, an increase of 0.83 percent. In after-hours trading, the index climbed even further, surpassing 24,500 points, once again setting its sights firmly on its record high.
Tariff Breakthrough Imminent: Will the "Buy the Rumor" Bubble Burst?
The main reason for this massive surge lies in a potentially imminent agreement between the US and the European Union on the tariff dispute. Rumors are circulating that an agreement on a 15 percent tariff rate might be reached, which fueled US markets and consequently pulled the DAX higher.
Should these rumors be confirmed, caution is advised: an agreement appears to be largely priced in already. There's a risk that as soon as the agreement is officially announced, profits will be immediately realized—a classic "sell the news" phenomenon after "buy the rumor" has already occurred.
Auto Stocks on Fire: Daimler Truck Chasing All-Time High – Siemens Energy Attacks €100!
Among individual stocks, automotive shares shined. Daimler Truck had a phenomenal day with a 7.3 percent performance. Closely followed by Porsche (up 6.7 percent) and Siemens Energy (up 6.4 percent). The significant gains in automotive stocks are a direct reaction to the tariff deal between the US and Japan.
Whether it's enough for a sustainable turnaround for Porsche remains to be seen, while Daimler Truck is steadily approaching its all-time high just under €48. Siemens Energy, meanwhile, is launching a new assault on the important €100 mark per share—an exciting battle that illustrates how markets react to global developments.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.