On Monday, Frankfurt's DAX experienced a notable increase of 1.6%, closing near 23,900 and setting a new record high. This rise can be attributed to investor optimism regarding advancements in the trade discussions between the United States and China. The two countries agreed to temporarily suspend the majority of tariffs on each other's goods for 90 days, with reciprocal tariffs reduced from 125% to 10%. Nevertheless, it's important to note that U.S. tariffs on Chinese imports related to fentanyl remain at 20%, resulting in an overall U.S. tariff rate of 30% on Chinese imports. Concurrently, President Trump announced his intention to sign an executive order aimed at aligning U.S. drug prices with those of other high-income countries.
In corporate developments, Evonik Industries saw a modest rise of 0.3%, following stronger-than-anticipated Q1 earnings. Salzgitter's shares increased by 1.3%, despite challenges from weak demand and tariff-related concerns. Among the leading performers were Infineon, which surged by 6.3%, Puma at 5.9%, and Mercedes-Benz AG with a 5.5% increase.
