The benchmark DAX index, comprising Germany's top 40 companies, rebounded sharply on Thursday with an 8.2% gain to close at 21,291 points, fully recovering losses from the previous two trading sessions.
The German Stock Exchange (Frankfurt-based) attributed this rally to the U.S. administration's announcement late Wednesday suspending new tariffs on select nations for 90 days, though maintaining existing 10% duties.
Market Context:
Export-Driven Vulnerability: As Europe's largest economy heavily reliant on exports, Germany remains particularly exposed to U.S. tariff measures.
American Market Dependence: The U.S. constitutes a critical export destination for German manufacturers, making trade policy shifts acutely consequential.
Analyst Insight:
This rebound reflects market relief at paused escalation, though structural risks persist given the maintained 10% tariffs. The DAX's volatility underscores Germany's sensitivity to global trade dynamics.