German stocks soared on April 10 as President Trump announced a 90-day halt to reciprocal tariffs, easing fears of a US-EU trade war. The DAX surged 4.53%, recovering from Wednesday’s 3% drop, closing at 20,563.
Trump cut EU auto tariffs from 20% to 10%, opening room for trade talks. European Commission President Ursula von der Leyen responded cautiously, stating that while the EU would pause countermeasures for 90 days, preparations for further actions continue.
Banks & Tech Stocks Lead Recovery
- Tech giants SAP (+7.28%) and Infineon (+5.89%) rallied.
- Banks rebounded on reduced recession fears—Deutsche Bank surged 7.15%, Commerzbank gained 1.64%.
German Inflation in Focus
March’s annual inflation eased to 2.2% (from 2.3% in February). A lower figure could fuel ECB rate cut bets, boosting stocks.
US Markets Slide Amid Recession Fears
Despite softer inflation, US stocks plummeted:
- Nasdaq (-4.31%)
- Dow (-5.53%)
- S&P 500 (-5.46%)
Rising Treasury yields (4.486%) and gold’s record high ($3,220) signaled growing economic concerns.
Key Risks Ahead
- Bullish DAX Case: Positive trade talks, dovish ECB, strong US data → 21,000.
- Bearish DAX Case: Trade tensions, high inflation, weak US data → 18,490.
Technical Outlook
- Upside: Break above 20,750 could target 21,300.
- Downside: Drop below 20,500 may test sub-20,000 levels.
