DAX Hits Record Highs but Faces Uncertainty from U.S. Tariff Threats

Germany's leading stock index surges past 22,600 points, driven by optimism over Ukraine peace talks and European economic resilience, but inflation and U.S. trade policies pose risks.

• The DAX reached a record high of over 22,600 points, marking a 12% increase since the start of the year, fueled by hopes for an end to the Ukraine war and robust global economic conditions.
• European Central Bank's continued interest rate cuts and positive market sentiment have supported the rally, though U.S. inflation concerns and tariff threats loom large.
• U.S. President Trump's proposed tariffs on steel, aluminum, and potentially cars have raised fears of higher inflation and economic strain, impacting market stability.
• The DAX's performance is heavily influenced by its export-driven companies, with 80% of revenues generated abroad and a significant reliance on the U.S. market.
• Analysts warn that the DAX's rapid growth may face corrections, with some sectors and companies, such as Fresenius Medical Care, already experiencing setbacks.

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