DAX Surpasses 25,000 for the First Time Ever Amid Hot German Stock Market

On the 27th, as European major stock markets continue their upward trend, the status of European major stock markets is displayed in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Kang Jinhyung aymsdream@

On January 7 (local time), Germany's DAX index surpassed the 25,000 mark for the first time ever immediately after the market opened.

According to the Frankfurt Stock Exchange, the DAX index hit a historic milestone, rising 0.55% from the previous day to reach 25,029.64 just after the market opened at 9 a.m. that day.

The DAX index has set new all-time highs for four consecutive trading days this year, including intraday records. In the previous session, it also set a new record at 24,904, signaling the imminent breakthrough of the 25,000 mark.

The DAX index's climb past 25,000 was driven by a combination of factors, including government fiscal expansion and strong performance in artificial intelligence (AI) semiconductors. Additionally, expectations of increased European military spending, fueled by geopolitical tensions such as the Venezuela crisis, further encouraged buying activity.

Rheinmetall, the seventh-largest company by market capitalization, surged 184% over the past year, while Renk Group rose 210% and Hensoldt 135%, with other major defense companies also posting returns exceeding 100%.

The DAX is an index comprising the top 1 to 40 companies by market capitalization listed on the Frankfurt Stock Exchange, and it surpassed the 20,000 mark for the first time in December 2024. Last year, it reached new all-time highs 34 times, rising by 23%.