The German DAX index surged to a new all-time high on Monday, reaching 24,609 points. The index has risen approximately 33% since hitting a low of 18,490 on April 7, 2025, and is now up about 23% year-to-date. This performance places the DAX ahead of its European peers such as France’s CAC 40 (+7%), the UK’s FTSE 100 (+9%), and the STOXX Europe 600 (+8%), as well as outperforming major U.S. indices like the S&P 500 (+6%) and the Nasdaq 100 (+9%).
Recent German economic data reflects a notable improvement in the country’s economic performance:
- Industrial production rose by 1.2% month-over-month, beating expectations (-0.6%) and the previous reading (-1.6%).
- The Services PMI increased to 49.7 points, higher than both the forecast (49.4) and the previous reading (47.1).
- The change in unemployment dropped to 11,000, below expectations (18,000) and the prior reading (33,000).
- The trade surplus widened to €18.4 billion, surpassing expectations (€15.7 billion) and the previous figure (€15.8 billion).
Investor sentiment has also been supported by the U.S. administration’s decision to delay the implementation of new tariffs until August 1, along with signals of potential trade talks between the EU and the U.S., raising hopes of a future agreement. It is also worth noting that the German banking sector has been one of the key drivers behind the DAX’s recent momentum.
From a technical standpoint, indicators suggest that DAX may continue to experience bullish momentum due to the following factors:
- Golden Cross Formation: The 20-day moving average (grey) at 23,708 points is nearing a bullish crossover with the 50-day moving average (blue) at 23,749 points, signaling the potential continuation of the upward trend.
- Relative Strength Index (RSI) is currently at 65, indicating strong positive momentum.
- MACD Indicator shows a bullish crossover, with the MACD line (blue) moving above the signal line (orange), reinforcing expectations of continued upside movement.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
