Overview

• The DAX closed at 23,147.02 points, marking a 2.64% daily gain and surpassing 23,000 for the first time in history.
• Defense stocks, led by Rheinmetall, surged on expectations of increased European defense spending and a potential German military budget boost.
• Geopolitical tensions escalated after failed talks between Ukrainian President Volodymyr Zelenskyy and U.S. President Donald Trump, further fueling defense sector growth.
• Automotive stocks also climbed, bolstered by EU Commission President Ursula von der Leyen's proposal to extend deadlines for CO2 compliance to aid manufacturers.
• European markets significantly outperformed U.S. indices in 2025, supported by strong corporate earnings, favorable ECB policies, and comparatively lower valuations.