German shares were high as markets of major optimisms

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On Friday, the German Dax index rose to a record high, becoming the first major European landmark, which pays off the losses caused by Donald Trump’s tariff threats because the optimism of investors in US trade increased world markets.

Dax was 0.7 percent higher, after the announcement of Thursday about the US and UK trade transaction, a US Trump and the new German Chancellor Friedrich Merzh, in which they agreed to rapidly resolve trade disputes. The United States and China should also meet this weekend to try to de -escalate the tariff war.

Merz, who warned after winning the election that Europe needs to “reach independence” from the US, also conjugated a concilian tone with Trump, saying that Washington remained “an indispensable friend and partner.” Both leaders agreed to meet in the near future, said the German government’s press.

The Dax’s return to the highs for all the time also reflects the wave of enthusiasm German stock Earlier this year, the plans for the borrowing and the introduction of hundreds of billions of euros into the military and infrastructure of the country were summoned.

Emmanuel Kau, Head of the Barclays European Strategy Department, said the trade news had given a wide stimulus to stock markets.

But he added: “Germany has an additional degree of excitement within this story about the revival and arrival of a new government. In Germany, there is increasing interest.”

German bonds that have been rallied in recent weeks, while investors have been looking for asylum upset, have abandoned some of these income, as more risky assets have exceeded.

On Friday morning, on Friday, a growing yield on 10-year state bonds of the German government increased to 2.58 percent. The bond yield goes to the price return price.

This year, European actions have outgrown their colleagues into Wall -States with optimism in connection with the cost of defense in combination with increasing fears over the influence of Trump’s trade war on the US economy.

This year, Dax increased by almost 18 percent. Defense stocks are strongly fulfilled after the cost commitments, and Reinmetall increased by 170 percent.

The German stock market also used high indicators of European banks. Deutsche Bank’s shares have grown by 43 percent this year.

While US shares have also resumed its losses since Trump’s “release” tariffs in early April, the S&P 500 landmark remains much lower than its February and decreased by almost 4 percent in 2025.

This year, the results of Europe, Wall -Strit, partially narrowed a large gap in the US and European actions that have expanded in recent years in the relentless action in US technological actions.

“The Fear of the Peak Trade behind us,” said Laura Cooper, a global investment strategist in Nuveen. But she added that “bouts of a blown price” should be expected when the breakdowns from the tariffs are washed through the world trading system.

But asset leaders also called cautiously, given the strong rhetoric of Trump at tariffs and more concern about the creation of the US policy.

“So far this (rally) is holding,” said Kevin Tozet, a member of the Carmignac Investment Committee. “But it is not visible that it will last for so long. The peak of the pipe may be behind, but uncertainty still has existed.”