FX.co ★ DAX Bounces Back, Posts Monthly Gain

On Wednesday, Frankfurt's DAX index edged up by approximately 0.3%, closing at 22,497, its highest level since early April, marking seven consecutive days of gains. This positive movement was driven by investor optimism regarding potential tariff negotiations, which outweighed the mixed signals from economic data and corporate earnings reports. From an economic perspective, while the U.S. economy surprisingly contracted in the first quarter, the Eurozone's GDP growth exceeded analysts' expectations. Germany also showed resilience, emerging from a brief downturn with a 0.2% growth in Q1, after experiencing a 0.2% contraction in Q4 2024. Among the top performers, Deutsche Borse led with a 3.7% increase following favorable financial results, with Rheinmetall climbing by 3.1% and Vonovia by 2.8%. Conversely, Zalando and Adidas faced challenges, declining by 5.2% and 4.1%, respectively. Additionally, Mercedes-Benz Group shares fell 2.7% as the company retracted its 2025 earnings forecast after a significant 41% drop in first-quarter profits. Volkswagen's stock also declined by 2.4% after the company reported a 37% decrease in profits for the first quarter. Throughout April, the index achieved a 1.5% gain.