DAX Stock Index Declines Amid Trump Tariff ThreatDAX Stock Index Declines Amid Trump Tariff Threat
The German stock index DAX 40 (Germany 40 mini at FXOpen) is showing bearish momentum at the start of the week. This may be driven by a combination of factors, the most significant of which is the threat of tariffs on Europe from the United States.
According to Reuters, US President Donald Trump has announced a 30% tariff on most goods from the EU, set to come into effect next month. However, the decision is not yet final. Analysts caution against premature panic, suggesting that negotiations could still result in a trade agreement — nonetheless, the chart reflects a sense of unease among investors.
Technical Analysis of the DAX 40 Chart
The price surge in July above the previous all-time high near the 24,500 level appears to be a false bullish breakout — a sign of market weakness.
Buyers may hope that the market will find support at the former resistance line (marked in red), drawn through the local highs of June.
However, if news surrounding the US–EU negotiations turns negative, the DAX 40 index could fall towards the 23,650–23,750 support area, which is reinforced by the lower boundary of the medium-term ascending channel.
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Dax40analiz
Germany’s DAX 40 Stock Index Hits Record HighGermany’s DAX 40 Stock Index Hits Record High
The country’s Finance Minister, Jörg Kukies, stated in an interview with CNBC that it is crucial for Germany to enter a period of economic growth, adding that structural deficiencies need to be addressed.
“We have just received another downward revision of growth forecasts from the IMF,” he said at the World Economic Forum in Davos. The International Monetary Fund (IMF) now projects Germany’s GDP growth at 0.3% in 2025 and 1.1% in 2026, according to the January update of its World Economic Outlook. This marks a sharp decline from the October forecast of 0.8% growth in 2025.
Germany’s annual gross domestic product contracted in both 2023 and 2024. Quarterly GDP figures were also modest, although the economy has so far avoided a technical recession.
Kukies also remarked that domestic German companies are “under stress” but continue to perform “very well” on the global market, seemingly referencing the rise of the DAX 40 stock index (Germany 40 mini on FXOpen). Indeed, yesterday the index surpassed the 21,300-point level for the first time in history.
Technical analysis of the DAX 40 stock index chart (Germany 40 mini on FXOpen) indicates that the price is forming two ascending channels. While rising within the steeper purple channel, the price has exceeded the upper boundary of the blue channel.
However, given that the price has not yet reached the upper boundary of the purple channel (as indicated by the arrow), it is reasonable to suggest that bullish momentum may be waning. If so, a possible scenario could involve a correction with a bearish breakout of the lower purple line, leading the price back into the blue channel. It is also possible that there will be one more attempt to set a new record, accompanied by the formation of bearish divergence on the RSI indicator.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.