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DAX Closes 2025 Up 23% Near Record, Capping Best Year Since 2019

Attention shifts to Fed minutes to gauge whether valuation‑led gains can endure into 2026.

Overview

  • The index finished at 24,490.41 after a 0.57% rise on the shortened final session, ending December up 2.7% with most of the year’s 34 records set in the first half.
  • Analysts highlight multiple expansion over profit growth as the key driver, with the DAX price-to-earnings ratio rising to roughly 15 while earnings expectations were trimmed to low single digits.
  • Defense and banking shares led the advance as Rheinmetall gained about 150% and Deutsche Bank and Commerzbank roughly doubled, with Siemens Energy also among standout performers.
  • Artificial intelligence remained the dominant market theme, propelling U.S. tech benchmarks to highs as investors await the Fed’s latest meeting notes for clarity on the 2026 rate path.
  • Gold notched record prices above $4,500 per ounce this year on strong central‑bank demand and geopolitical tension before a late pullback, signaling persistent safe‑haven interest.