FX.co ★ DAX Sees Best Yearly Performance Since 2019

The DAX index in Frankfurt experienced an uplift, closing approximately 0.6% higher at 24,490 in the final trading session of the year, reaching its highest point since October 9. Infineon Technologies led the gains with a 2.6% rise after CEO Jochen Hanebeck projected a prolonged boom in AI chip demand, driven by robust requirements for semiconductors in AI data centers. Defense stocks and banks also recorded significant advancements, with Renk increasing by 3.2%, Rheinmetall by 2.3%, and Hensoldt by 1.8%. In the banking sector, Commerzbank rose by 1.5% and Deutsche Bank gained 1.1%. Investors were also keenly awaiting the release of the latest minutes from the Federal Reserve, alongside keeping an eye on geopolitical developments. The DAX wrapped up 2025 with a 23% annual gain, marking its best performance since 2019, and surpassing other European markets.