DAX Slips Despite Positive Ifo Data as Trade Policy Uncertainty Lingers
Germany’s DAX index opened 0.87% lower despite unexpectedly strong Ifo Business Climate figures reaching 86.9, signaling investor Optimism fails to sustain this week’s 4% rally. The disconnect highlights growing market sensitivity to US-China trade developments.
Potential tariff reductions by the Trump administration loom as a double-edged sword—while German Finance Ministry officials openly support easing trade barriers, markets remain wary of unpredictable policy shifts. The Ifo Institute’s bullish reading suggests underlying economic resilience being overshadowed by geopolitical uncertainties.