DAX Rally Defies Weak Economic Data Amid Tariff Optimism
Germany’s benchmark DAX index edged 0.22% higher despite disappointing economic indicators, as traders bet on potential tariff negotiations to ease trade pressures. The resilience comes against a backdrop of Q1 GDP contraction (0.2%) and sluggish March retail sales (down 0.2%).
Market participants appear to be discounting immediate economic weakness in favor of strategic positioning. Germany’s substantial €17.7 billion trade surplus in February underscores the market’s sensitivity to global commerce dynamics. ECB policymakers now face mounting pressure to accelerate monetary easing should tariff impacts materialize.