DAX Hits Record High, Surpassing 23,000 Points

Germany's leading stock index rises sharply, driven by defense and automotive stocks amid geopolitical tensions and economic policy shifts.

The DAX closed at 23,147.02 points, marking a 2.64% daily gain and surpassing 23,000 for the first time in history.
Defense stocks, led by Rheinmetall, surged on expectations of increased European defense spending and a potential German military budget boost.
Geopolitical tensions escalated after failed talks between Ukrainian President Volodymyr Zelenskyy and U.S. President Donald Trump, further fueling defense sector growth.
Automotive stocks also climbed, bolstered by EU Commission President Ursula von der Leyen's proposal to extend deadlines for CO2 compliance to aid manufacturers.
European markets significantly outperformed U.S. indices in 2025, supported by strong corporate earnings, favorable ECB policies, and comparatively lower valuations.