Dax, MIB FTSE Rally as US-China Trade Deal Hopes Boost Risk Sentiment
There were rumors of a possible trade deal between the US and China, which helped improve risk sentiment, sending DAX to a new record high.
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European equity markets continue their strong bullish momentum, with record-breaking performances in Germany and the UK. Italy and Spain are also reaching levels unseen since before the 2008 financial crisis, reflecting resilient corporate earnings, improving investor sentiment, and economic stability. However, as markets push higher, traders remain cautious ahead of key economic data releases and central bank decisions.
Dax Chart Daily – The Record Highs Don’t Stop
The major European stock indices closed on a strong note, with the German DAX reaching a new all-time high of 22,034.14, after setting an intraday record at 22,046.41. Italy’s FTSE MIB also surged by 0.91%, closing at 37,582.04, its highest level since June 2008. France’s CAC 40 edged higher by 0.28%, while the UK’s FTSE 100 managed a 0.11% gain, securing yet another record close. Spain’s IBEX 35 climbed 0.52%, reaching its highest level in over 15 years.
Main European Stock Indices at the Close
Germany’s DAX
- Closed at a new all-time high of 22,034.14.
- Set an intraday record at 22,046.41 before slightly pulling back.
Italy’s FTSE MIB
- Surged 0.91%, closing at 37,582.04.
- This marks its highest level since June 2008.
France’s CAC 40
- Gained 0.28%, extending its recent upward momentum.
UK’s FTSE 100
- Edged up 0.11%, achieving yet another record close.
Spain’s Ibex 35
- Climbed 0.52%, reaching its highest level since June 2008.
Meanwhile, US stock indices showed mixed performance as European traders exited the market. The NASDAQ initially turned positive before slipping back into negative territory, while the S&P 500 also remained slightly down. The Dow Jones Industrial Average, however, continued to post modest gains. The Dow was trading at 44,500, up 30 points or 0.10%. The S&P 500 hovered at 6,000 points, down 7 points or 0.10%, while the NASDAQ Composite declined 70 points or 0.40%, settling around 19,645.
A U.S. administration official has indicated that if meaningful progress is achieved on fentanyl, the U.S. may consider pausing the 10% tariffs currently imposed on China. This potential policy shift hinges on future discussions between Donald Trump and Chinese President Xi Jinping. The two leaders were originally scheduled to speak last week, but the call was postponed and has yet to be rescheduled. According to the Wall Street Journal, the delay stems from the fact that China has not yet presented an offer that Trump finds acceptable. The report suggests that China is in no rush to reach a quick deal, as its preference is to secure a broader agreement rather than a piecemeal arrangement.
Rather than focusing solely on fentanyl, President Xi appears interested in negotiating a more comprehensive agreement that could shape the future of U.S.-China relations. Some sources suggest that China may also be looking to revive aspects of the “Phase One” trade agreement that was in place during Trump’s first term. In the financial markets, Chinese equities slipped by approximately 1%, marking a pullback after a strong start to the year. Investor sentiment remains cautious as uncertainty surrounding U.S.-China trade negotiations continues.
Market sentiment remains cautious, with traders assessing broader economic conditions and sector-specific movements. The divergence between European and US indices suggests localized optimism in Europe, while US markets appear more uncertain amid shifting investor sentiment.
German Index Dax Live Chart
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