Exciting Times Ahead: Dax Aims for 24K After Global Deals
Dax aims for 24,000 points following the China agreement.
Fast Facts:- Dax hits a record high of 23,911.98 points following global agreements- Export-focused sectors see significant gains- US Dollar strengthens, gold prices dip
The global economic landscape just got a huge boost! After major deals between powerhouse nations, the German DAX soared to an unprecedented level. The Dax is now up 1.8 percent at 23,911.98 points, flirting with the elusive 24,000-point mark.
The EuroStoxx 50, the Eurozone's leading index, climbed 1.49 percent to 5,393.19 points this morning, while the MDax, the index of mid-sized German companies, surged 1.10 percent to 30,056.18 points. Although both indices are nearing their all-time highs, they're still shy of their respective records set earlier this year.
Export-oriented sectors are registering the most significant gains, with commodity, auto, and tech stocks up by 2.5 percent, and oil and industrial stocks also in hot demand. On the other hand, defensive stocks like utilities and telecommunications saw slight losses, with the biggest hit taken by pharmaceutical stocks, down 3.2 percent. Pressure from dividend payments such as Sanofi's and Trump's plans to lower US drug prices seems to be bearing down on the sector.
Meanwhile, the S&P500 and the Nasdaq futures rose by 2.7 and 3.5 percent, respectively, as the US dollar gained 1 percent. However, the gold price took a nose-dive, dropping to around $3,233 per ounce (~31.1 grams), over $90 lower than last Friday. The gold price in euros also took a staggering hit, falling by about €52 to €2,904 per ounce.
The Swiss franc and the Japanese yen, considered safe-haven currencies, weakened by 1.5 and 1.6 percent, respectively, as the dollar gained significantly with the new headlines from the US-China trade conflict. The dollar index rose 1.2 percent to its highest level in a month, while the euro dropped 0.9 percent to $1.1111, hitting a one-month low.
The highly-anticipated agreement between China and the USA to temporarily reduce their mutual tariffs has been welcomed by the market with open arms. "There's a palpable tension at the stock exchanges," said Thomas Altmann, portfolio manager at QC Partners. "But we'll have to wait and see later in the day how far the talks have progressed and how concrete the results are."
The stock of ProSiebenSat.1 made headlines with a nearly 20 percent jump in share price. The Czech ProSieben majority shareholder PPF is blocking the Italian MFE's takeover attempt and offering ProSiebenSat.1 shareholders more.
In other news, shares of defense companies Hensoldt and Rheinmetall took a tumble, dropping by 6 and 3 percent, respectively, following Zelensky's agreement to meet with Putin for talks in Turkey on Thursday.
The Department of Commerce has reported that the German stock market barometer plummeted to just under 18,490 points following Trump's massive tariff announcements and China's countermeasures earlier in April. However, since then the Dax has experienced a remarkable recovery, gained around 29 percent, and is already up almost 20 percent for the year. Stay tuned for more updates on the global stock market landscape!
The recent global deals have positively impacted the German DAX, with the index nearing the 24,000-point mark, a testament to a thriving economic landscape. Meanwhile, mutual tariff reductions between China and the USA have instilled optimism in the stock market, potentially paving the way for increased investment opportunities in various sectors, such as finance, investing, and the stock-market.
