Germany’s Dax index climbed to a record high on Friday as investor optimism over US trade deals boosted global markets, becoming the first major European benchmark to recoup the losses sparked by Donald Trump’s tariff threats.
The index was 0.7 per cent higher in morning trading, after Thursday’s announcement of a US-UK trade deal on Thursday was followed by a call between Trump and Germany’s new chancellor, Friedrich Merz, in which they agreed on the need to quickly resolve trade disputes.
The Dax’s return to all-time highs also reflects the wave of enthusiasm for German stocks sparked earlier in the year by Merz’s plans to increase borrowing and inject hundreds of billions into the country’s military and infrastructure.