Frankfurt’s DAX rose 0.7% on Friday, breaking decisively above the 23,500 level to set a new all-time high, bolstered by strong global risk appetite and extended gains from the previous session.
DAX at all-time highs
The rally aligned with positive sentiment in global markets following the confirmation of a US-UK trade agreement, which investors see as a blueprint for an eventual broader US-EU deal. The news helped ease fears of escalating transatlantic trade tensions and revived hopes for tariff reductions, particularly on industrial goods and autos—key sectors for Germany’s export-driven economy.
Traders are now looking ahead to high-stakes trade talks between the US and China scheduled for the weekend in Switzerland, with expectations that any breakthrough could lift pressure on global supply chains and bolster demand. Meanwhile, earnings season continued to support the rally, as several DAX heavyweights posted strong results. Siemens Energy, Daimler Truck, Bayer, Merck, BMW, and Mercedes-Benz Group led the gains, rising between 1.7% and 2.9%, buoyed by upbeat guidance and positive momentum across industrial and healthcare segments.
Commerzbank up after Q1 results
Commerzbank also reported better-than-expected first-quarter net profit, citing lower provisions and improved cost controls. However, its shares rose just 0.6%, as cautious forward guidance tempered investor enthusiasm. Elsewhere, tech and consumer discretionary sectors remained largely flat, as investors awaited more clarity on US Federal Reserve policy and Chinese demand trends.
For the week, the DAX was on track for a nearly 2% gain—its fourth consecutive weekly advance—driven by a combination of robust earnings, stabilizing energy prices, and renewed optimism surrounding Germany’s economic trajectory under the newly formed coalition government. Analysts noted that the DAX’s breakout to record highs reflects growing confidence in the eurozone's resilience despite lingering global headwinds, including elevated inflation, geopolitical friction, and uncertain central bank policy paths.
