The German Index Dax climbed the first major European reference value on Friday, which compensed to the losses caused by the Donald Trump’s customs threats, while investor optimism encouraged markets in the region.
Dax increased by 0.6 percent, after the trading agreement between the US and the UK followed the U.S. President and the new German Chancellor Friedrich Merz, in which they agreed on the need to resolve trade disputes.
Merz, who warned that Europe was “achieved by independence” from the United States, also took a reconcilable tone with Trump, saying that Washington remains “an indispensable friend and partner.” Both leaders agreed to meet in the near future, the German government said.
Officials from the US and China should also meet this weekend to discuss the trade war. Finance Minister Scott Bessent and Trade Representative Jamieson Greer will represent now, while the Chinese delegation will lead the vice president and Prime Minister He Lifeng.
Trump wrote on his social network, Truth wrote that the 80-percent customs in China “is correct”, which signals the potentially minor reduction in criminal understatement than investors expected.
S & P 500 lost wounds on Friday and traded almost unchanged.
The Return Dax on historical maxims also reflects the wave of enthusiasm for German stocks, this year this year Merzo plans for increasing borrowing and injection of hundreds of billions in the country and the Earth’s army and infrastructure.
Emmanuel Cau, head of the European Stock Strategy in Barclays, said for the Financial Times that the news of the trade would give a wide boost of stock exchanges.
But he added: “There is an additional degree of excitement in Germany as part of this story about the revival and arrival of the new government. Everything is greater interest in Germany.”
German bonds, which have increased in recent weeks, while investors sought refuge from market turmoils, lost some of these gains because the more risky assets achieved better results.
The yield on 10-year-old german government bonds increased by 0.04 percentage points until Friday afternoon, at 2.56 percent. Bond yields move inversely proportional to prices.
European shares overshadowed their competitors from Wall Street this year due to optimism around defense expenses in combination with growing fears from the influence of the Trump Trade War to the American Economy.
Dax increased by almost 18 percent this year. Defense shares were strongly sold after the liability of consumption, and Rheinmetall increased by more than 170 percent.
The German stock market also benefited from strong results of European banks. Deutsche bank shares increased by 43 percent this year.
Although American shares have recovered from their losses from Trump’s customs announcements in the “Day of Liberation” in early April, the reference value of the S & P 500 remains significantly below its record level in February and fell for almost 4 percent so far in 2025. Years.
The surpassing Europe compared to Wall Street this year has been partly reduced by a large gap between American and European shares that in recent years increased due to the irrematible growth of American technological shares.
“The highlight of fear of trade is behind us,” said Laura Cooper, a global investment strategy in Nuveen. But she added that they can expect to “elude unstable price movement” because the disorders caused by customs seizure the global trade system.
However, property managers also called on caution, given the Trump’s strong rhetoric about customs and wider concerns about US policies.
“For now this one [rast] Keeps up, “Kevin Thozet said, member of the Carmignac’s investment board.” But it’s not obvious that it will continue for a long time. The peak of Trampism may be behind us, but uncertainty is still present. “
Comments seems to be signaling the change in the Trump’s attitude on Friday’s Chinese Customs rates. He said the president on Wednesday that he would not lower customs to bring China for the negotiating table.
