The German stock market is showing a surge of optimism, with the DAX index approaching its all-time high. On Monday, August 11, 2025, the leading German index gained 0.4 percent, trading around 24,250 points, according to broker IG. This performance brings it close to the record of 24,639 points set the previous month. The positive market sentiment is driven by anticipation of key upcoming economic and geopolitical events.
Investors are closely awaiting the release of US inflation data on Tuesday, August 12, 2025, which is crucial for assessing the US Federal Reserve's potential interest rate adjustments in September. In February 2025, US consumer prices had risen by 2.8 percent year-on-year. Additionally, the scheduled meeting between US President Donald Trump and Russian President Vladimir Putin on Friday, August 15, 2025, in Alaska, is a significant focus. This summit aims to discuss a potential peace settlement for the conflict in Ukraine, now in its fourth year. While geopolitical events can introduce uncertainty, historical patterns suggest markets tend to recover and reach new highs over the longer term if economic fundamentals remain robust. Analysts note that the German economy is navigating challenges such as US trade policies and a loss of exporter competitiveness, but the prospect of reduced global uncertainty and a clearer path for US monetary policy are supporting German equities.