DAX Hits Record Highs as U.S. Inflation Data Eases Market Tensions
The German stock index surged past 20,900 points, buoyed by improved inflation outlooks in the U.S. and investor optimism ahead of Donald Trump’s second term.
- 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.
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Frankfurter Allgemeine Zeitung 
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