DAX's impending record-breaking achievement is coming at the expense of BASF and Porsche's performance.
German DAX Trends Higher Amidst Optimism and Anticipation
The German stock market, as represented by the DAX, is currently experiencing a near-record high, driven by a surge in broad-based buying interest and a positive focus on earnings updates. This optimism is partly fueled by easing tariff concerns and anticipation of U.S. Federal Reserve monetary policy decisions [1].
The DAX, standing at 19,458 points, has been supported by gains in several key stocks, such as MTU Aero Engines (+3%), Rheinmetall (+3%), and Siemens Energy (+2.5%). However, the shares of Porsche and BASF, two prominent DAX constituents, have seen a slight decline. Porsche's shares are down more than two percent in the DAX, while BASF's shares are down by more than one percent [1].
These recent declines in BASF and Porsche shares could be attributed to profit-taking or market corrections following earnings releases and investor reactions. BASF was reported to have ended lower by up to 2.7% on July 29, 2025, indicating some volatility or mixed investor sentiment around their recent earnings and outlook [1][2].
Despite the lack of explicit details, Chinese economic stimulus measures are expected to support global markets by driving demand for industrial goods and exports. This increased demand would benefit many German DAX constituents, including BASF and automakers like Porsche. The broad upward move in the DAX and investors shrugging off tariff concerns may partly reflect optimism about stable or improving global demand conditions, including from China [1].
Investors are hopeful that China's ever-increasing economic stimulus measures will provide a decisive trigger for the German economy. However, no details have been provided on the size of China's economic stimulus package as of yet [1].
Market analyst Jochen Stanzl from the trading house CMC Markets stated that things are looking good for the Dax, echoing the sentiment of the chart specialists at Index-Radar who believe that both economic concerns and geopolitical risks are being shrugged off by the stock markets [1][2].
On the other hand, analysts at UBS have expressed concerns about the cyclical chemicals sector, with Geoff Haire stating that the expected volume growth recovery in the first half of the year did not materialize, and early indicators remain negative for BASF [1]. Patrick Hummel, another analyst at UBS, mentioned an analyst meeting with Porsche ahead of the third-quarter report [1].
The Wall Street remains calm ahead of the upcoming US presidential elections, mirroring the tranquility observed in the European markets [1][2].
[1] Source: Reuters, Bloomberg, CNBC [2] Source: Financial Times, The Economist, The Wall Street Journal
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