Dax Index News: Tariff Delay Fuels Early Gains—Forecast Eyes 24,500 Upside

DAX Edges Up as Trump Delays EU Tariffs—Eyes on Sentiment Data

The DAX opened higher on Tuesday, May 27, rising 0.18% to 24,072 in early trading. Optimism toward US-EU trade lifted the DAX during Monday’s 1.68% rebound on news of a delay to the 50% tariffs.

Ahead of the European session, consumer sentiment figures from Germany sent mixed signals. The GfK Consumer Confidence Index increased to -19.9 in June, up from -20.6 in May. While sentiment improved, household spending plans remained subdued, impacting hopes of a stronger economic outlook.

Rolf Buerkl, NIM’s head of consumer climate, reportedly stated:

“In view of the general economic situation, people seem to think it advisable to save.”

Sector Performance

Rheinmetall advanced 1.28% in early trading as investors considered developments in the Ukraine war. Recent Russian strikes on Ukraine have dampened hopes of peace, driving demand for military stocks.

Despite broader optimism over tariff delays, lingering concerns weighed on auto stocks. BMW fell 0.40%, while Mercedes-Benz Group, Porsche, and Volkswagen also faced early losses.

Eurozone Economic Sentiment in Focus

Investors should also watch Eurozone economic sentiment figures during the morning session. Economists expect the Economic Sentiment Index to rise from 93.6 in April to 94 in May. A higher reading may boost hopes for a more robust economic recovery, supporting DAX-listed stocks. However, a lower print may pressure risk assets.

Beyond the numbers, ECB commentary will continue to drive DAX trends.

Wall Street Set for a Post-Holiday Rally

US futures markets signaled a post-Memorial Day rally, boosting risk sentiment. The Dow mini soared 406 points, while the Nasdaq 100 and S&P 500 futures jumped 262 and 64 points, respectively.

US markets reacted to President Trump delaying 50% tariffs on EU goods until July 9.

US Consumer Sentiment in the Spotlight

Later in the European session, consumer sentiment numbers will influence sentiment. Economists forecast the CB Consumer Confidence Index will rise from 86 in April to 87.2 in May,

A higher-than-expected reading could drive demand for risk assets, including DAX-listed stocks. Rising confidence may fuel consumer spending. Given private consumption contributes over 60% to US GDP, a pickup in spending would ease US recession concerns. Conversely, a surprise drop could weigh on the DAX.

Other stats include durable goods orders, the Dallas Fed Manufacturing Index, and house price data. However, unless the reports deviate significantly from forecasts, these will likely play second fiddle to the consumer confidence numbers.

Near-Term Outlook

The DAX’s near-term outlook depends on upcoming economic data, trade developments, and central bank signals.

• Bearish Scenario: Weaker growth prospects, rising trade tensions, and hawkish signals could send the index toward 23,500.
• Bullish Scenario: Positive data, dovish ECB cues, and positive US-EU trade headlines may drive it toward 24,500.

More information in our economic calendar

DAX Technical Indicators

Daily Chart

Despite increased market volatility, the DAX remains above the 50-day and 200-day Exponential Moving Averages (EMA), preserving its bullish trend.

A move above the May 21 record high of 24,152 could push the index to 24,350. A sustained move through 24,350 may pave the way to 24,500.

On the downside, a break below 24,000 would expose the 23,750 level, with 23,500 the next support level.

The 14-day Relative Strength Index (RSI) at 65.5 suggests the DAX has room to revisit 24,152 before entering overbought conditions (RSI > 70).

Final Thoughts

Volatility may persist as investors consider US-EU trade news, central bank commentary, and macroeconomic data. German equities also remain exposed to EU policy shifts and broader fiscal developments. Traders should stay attuned to both technical and fundamental drivers.