DAX leads the way amid strong factory orders release.
by Joshua Mahony
FX Street
The DAX leads in early European trade today, with the German bourse less than 1% away from hitting a fresh intraday record high. This comes off the back of yet another batch of upbeat data out of the German economy, with industrial production posting the strongest monthly gain since October 2021 (3%). Coming off the back of yesterday’s impressive 3.6% factory orders release, there is clearly a case for an uplift in economic activity within Europe’s largest economy. Interestingly, the breakdown in trade between the US and China could yet provide the basis for greater cooperation between the EU and the Asian powerhouse as highlighted by the UK-India trade agreement. Nations are clearly prioritising trade agreements in a bid to make up for the prospective loss of demand from the US, and this could come to the benefit of European output. Meanwhile, concerns around increased tariffs on German autos have been somewhat counteracted by the fact that Chinese cars will become significantly more expensive given the wider tariffs in place, making the likes of VW, Porsche, and Mercedes relatively more attractive compared to their Chinese rivals.