German DAX Hits New Record High, MDAX Reaches 3-Year High

The DAX reached a new record high of 24,341 points, extending its year-to-date gain to 22%. The MDAX also surged, surpassing the 31,000-point mark for the first time in three years.

The German stock market has shown resilience, with the DAX reaching a new record high of 24,341 points on Wednesday, extending its year-to-date gain to 22% [1]. The MDAX also surged, surpassing the 31,000-point mark for the first time in three years. The positive performance was bolstered by clear gains on the US and Asian stock markets, as well as the German cabinet's plan to unveil a multi-billion-euro package of tax cuts [1].

The DAX gained 0.60 percent to 24,237 points in early trading on Xetra, supported by global market trends and the anticipated tax cuts [1]. The MDax index of medium-sized companies rose by 0.67 percent to 30,980 points, while the EuroStoxx 50, the leading index for the eurozone, rose by around 0.4 percent [1].

Investors on the German stock market regained their courage, according to experts at Landesbank Helaba, with support from Wall Street [1]. However, the danger of another slide is still not averted due to the ongoing tariff disputes between the US and the EU and China [1].

Among individual stocks, DHL Group gained 2 percent on the DAX, with Citigroup recommending buying its shares due to potential profit margin recovery in the express business [1]. Airbus rose 2.5 percent, as China considers ordering hundreds of aircraft from the European manufacturer [1].

Shares in online pharmacy Redcare fell by around 10 percent after Kepler Cheuvreux downgraded them to "hold," citing structural risks associated with the voluntary nature of the Health ID [1]. Conversely, SFC Energy rose by 6 percent following a major order from Denmark, and Thyssenkrupp Nucera secured a major order for an electrolysis plant, with its shares rising by over 7 percent [1].

In summary, the DAX and MDAX's record highs reflect a combination of global market support, German tax cut plans, and strong individual stock performances. However, the ongoing trade disputes pose a potential risk to market stability.

References:
[1] Frankfurt stock market opening - DAX heads for record high - dpa-AFX. (2025, 06/04). Retrieved from https://www.marketscreener.com/quote/index/DAX-7395/news/Frankfurt-stock-market-opening-DAX-heads-for-record-high-50152463/