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The Dax exceeded the 25,000 point mark for the first time in its history. The leading German stock market index rose to 25,003.73 points in the first few minutes of trading. Because of the federal government’s billions in infrastructure and armaments, the prospect of a revival of the German economy in the new year is a key price driver.
A run on defense company stocks after the US military strike against Venezuela had already pushed the Dax past the record set in October on Monday. Unresolved conflicts also contributed to the index records – such as Ukrainian warthe in Germany led to higher demand for defense stocks.
In addition, there was growing hope on the stock market that oil prices would fall, which has already come true to some extent. Cheaper oil is good for the global economy, could reduce inflationary pressure and mean further interest rate cuts by central banks. The seasonality also speaks in favor of the Dax, as January is usually one of the stronger months on the stock market.
Prices are also rising elsewhere
Market analyst Jochen Stanzl from Consorsbank gives three reasons for the DAX rise: Firstly, the relief that it was because of the US attack on Venezuela a military conflict has not occurred, secondly, the prospect of falling oil prices in the medium term and thirdly, a new appetite among investors Shares outside the USA. The “New Year’s rally” in the Dax is in full swing, he said.
Overall, the stock market mood is currently extremely positive. In Europe, the Eurozone leading barometer Euro Stoxx 50 is gradually heading towards the 6,000 point mark. But tailwind is also coming from Wall Street, where the leading index Dow Jones Industrial is now heading towards the 50,000 point mark.
The DAX is growing, the economy is shrinking
Towards the end of 2025, investors on the German stock market had already increasingly placed their bets on a revival of the German economy through the debt-financed infrastructure and armaments billions in the federal government’s special funds and through less bureaucracy.
The rally on the stock markets is in stark contrast to the current tough economic situation in Germany. Investors often focus not on the current situation, but on future profits. In addition, the 40 companies listed in the DAX are internationally positioned and generate the majority of their sales abroad.
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