FX.co ★ DAX Rebounds from 4-Month Lows

On Thursday, the DAX experienced a substantial rise of approximately 7.5%, nearing the 21,140 level. This marked a significant recovery from the nearly 3% drop recorded in the previous session, which had driven Germany's leading index to a four-month low. This surge was part of a broader upswing in both European and Asian markets, spurred by President Trump’s decision to implement a 90-day pause on reciprocal tariffs for most U.S. trade partners, with China being the notable exception. This move is intended to foster renewed trade negotiations. Although automobiles remain under a 25% tariff, this temporary ceasefire has sparked optimism that the final tariff arrangements might be less harsh than initially anticipated. German automotive stocks saw considerable gains, with Mercedes-Benz rising by 5.9%, BMW increasing by 7%, Porsche ascending by 7.3%, and Volkswagen reaching a 5.4% increase. Additionally, Deutsche Bank rose by 11.9% and Adidas by 9.8%.