The German DAX 40 index (Germany 40 mini on FXOpen) is showing significantly stronger performance than other major global stock indices as of the end of May. For comparison, since the beginning of 2025:
→ The tech-heavy Nasdaq 100 has remained largely flat;
→ The S&P 500 is down by 1%;
→ Japan’s Nikkei 225 has fallen by approximately 4.5%.
Why Is Germany’s Stock Index Climbing?
The rally may be driven by a combination of factors, including:
→ An ambitious fiscal stimulus programme launched by the German government, featuring substantial public investment in defence and infrastructure development.
→ A dovish monetary policy stance from the European Central Bank (ECB) amid slowing inflation. Expectations of further interest rate cuts in 2025 have made equities more attractive than bonds, drawing capital into the stock market.
Technical Analysis of the DAX 40 Chart (Germany 40 mini on FXOpen)
These fundamental drivers have supported the formation of an upward trend channel (marked in blue), with the median line acting as a key area of support.
The DAX stock index experienced a sharp drop on Friday (highlighted by the arrow) after the US President unexpectedly announced 50% tariffs on EU imports, citing slow progress in trade negotiations. By Sunday, however, Trump postponed the tariffs until 9 June following a “constructive conversation” with European Commission President Ursula von der Leyen.
Since then, the price has:
→ Rebounded from the lower boundary of the channel, which is reinforced by support at the 23,350.0 level;
→ Approached the 24,100 level — a strong resistance zone this month.
Given the uncertainty sparked by Trump’s impulsive policy shifts, investors may be shifting capital from US to European markets, further supporting the DAX 40’s position as a leader among global stock indices.
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