The DAX, Germany's foremost stock market index, broke the 22,000-point barrier for the first time, marking a significant milestone less than a month after surpassing 21,000 points. This achievement is attributed to falling interest rates and a degree of investor optimism, despite trade conflict fears following US tariffs announced by President Trump. Experts caution, however, that the positive momentum is mainly driven by a few multinational companies, with much of the broader market exhibiting sluggishness and uncertainty about future trends.
The DAX index reached a record high of 22,003.91 points, driven by declining interest rates and investor confidence, even amid global trade tensions.
'The markets are currently painting an extremely optimistic picture of a booming economy while interest rates simultaneously fall,' said Thomas Altmann, indicating potential risks.
Analyst Andreas Lipkow noted that gains are concentrated in a few firms, suggesting underlying weakness in many sectors of the economy.
Despite the DAX's rise, apprehensions linger about sustainability due to escalating trade conflicts and the sluggish performance of most companies.
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