FRANKFURT—German stocks are riding a wave of relief this April, with the DAX index climbing steadily as fears of a transatlantic trade war start to fade. On April 14, the benchmark index jumped 2.2%, followed by a 1.3% rise the next day, and by April 23, it was up another 3%. Investors, battered by months of uncertainty, are finally catching a break, and the mood in Frankfurt’s trading halls is cautiously upbeat.
The spark? A string of moves from Washington signaling a softer stance on tariffs. On April 10, the U.S. announced a 90-day pause on some tech-related levies, sending European markets into a frenzy—Germany’s DAX soared nearly 6% that day. The decision, outlined in a U.S. Trade Representative statement, aimed to give negotiators breathing room to hammer out deals with European partners. By April 23, hopes of further de-escalation fueled another rally, with German exporters like Volkswagen and Siemens leading the charge.
It’s not just the U.S. pulling back. Sino-U.S. trade talks have also shown flickers of progress, easing worries about global supply chains that German manufacturers lean on heavily. A European Commission report on April 16 noted “constructive dialogue” between Washington and Beijing, which has calmed nerves in Berlin’s industrial heartland. Germany, with its export-driven economy, has been on edge since tariff threats first flared last year. Now, factories from Stuttgart to Hamburg are humming with a bit more swagger.
The numbers tell the story. On April 24, the DAX closed at 22,069, up 0.5% for the day and marking its third straight session of gains. The Ifo Business Climate Index, a closely watched gauge of German sentiment, ticked up in April to reflect boosted confidence in infrastructure and defense spending, despite lingering trade concerns. The expectations component of the index, though slightly down at 87.4, still beat forecasts of 85, signaling that businesses aren’t bracing for the worst anymore.
German industrials and exporters aren’t the only ones smiling. European markets across the board—France, Italy, Spain, and the Netherlands—have tracked Germany’s upward swing, with stocks in Paris and Milan posting gains in lockstep. A joint statement from EU finance ministers on April 18 underscored the bloc’s push for “open and fair trade,” a diplomatic nudge that seems to be paying off.
Still, it’s not all smooth sailing. Some analysts warn that tariff talks could stall, and Germany’s auto sector took a hit earlier this week when Volvo’s sluggish outlook dragged on regional peers. But for now, the data is clear: German stocks are climbing, trade fears are easing, and optimism is creeping back into the market. On April 25, the DAX opened with modest gains, holding steady above 22,000.