Overview

• The DAX closed at a record 20,903.39 points, marking a 1.2% increase on Friday and a strong start to 2025 for the German stock market.
• U.S. core inflation eased slightly to 3.2% in December, calming fears of aggressive Federal Reserve rate hikes and boosting global market sentiment.
• Investors remain optimistic despite concerns over potential trade policy changes as Donald Trump prepares to begin his second term as U.S. President on Monday.
• Rising global defense spending contributed to gains, with Rheinmetall shares climbing 6.5% following a major contract for its Skynex air defense system with Italy.
• Economists warn 2025 may bring increased market volatility due to geopolitical uncertainties, including U.S. policy shifts, European elections, and ongoing global conflicts.