Stocks on the rise in early trading: DAX recovers momentum
Stand: 26.06.2025 10:11 AM
The DAX is once again on a roll, notching up a 0.7% gain at the opening bell, pushing the index to 23,652 points. Yesterday's minor dip - a 0.6% loss - seems like yesterday's news, thanks to a fragile truce between Iran and Israel. Market analyst Jochen Stanzl from CMC Markets puts it this way, "The ceasefire is holding, and the profit-taking from yesterday's DAX is already a distant memory. The easing of geopolitical tension seems to be luring bargain hunters back into the market."
However, other factors lurk ominously. The US trade policy, with its potential to disrupt the exchange, remains a looming shadow. Europe's stocks are still grappling with the trade tensions, as Ipek Ozkardeskaya, analyst at Swissquote Bank, elaborates, "European stocks have been struggling under the weight of trade tensions, and the ECB's easing monetary policy, as well as surging interest in European defense stocks, are increasingly irrelevant factors." She warns of an impending consolidation in the coming days.
The ongoing US trade policy has had a profound impact on the global economy. European stocks returned a robust +20.6% in 2025, rebounding from early fears of trade wars and economic decoupling. Yet, the US tariffs pose significant risks to the European economic outlook. The ECB projects that US tariffs on goods imports are higher than initially projected, with most countries facing an increase of around 10 percentage points and China experiencing a hike of about 20 percentage points. This elevated tariff regime breeds a sense of prolonged uncertainty, which the ECB views as a chief risk factor, with the uncertainty slowly easing throughout 2027.
Despite trade policy uncertainty, European markets derive some protection from a lack of EU retaliatory tariffs and continued policy efforts. However, trade dynamics remain complex, with tariffs and uncertainty expected to keep volatility high and burden trade-dependent sectors in Europe. The future of the DAX and European stocks hinges on how these factors unfold over the coming weeks and months.
The fragile truce between Iran and Israel, while temporally easing geopolitical tension, might only be a fleeting distraction from the long-standing issue of US trade policy, which continues to heavily influence the finance business and general-news. The looming US trade policy, with its potential to disrupt the exchange, remains a significant concern for market analysts, including Jochen Stanzl from CMC Markets and Ipek Ozkardeskaya, analyst at Swissquote Bank, who warn of an impending consolidation in the coming days for European stocks, despite Europe's stocks returning a robust +20.6% in 2025.
