📈 DAX gains 2.71%

Investors in European markets are closely monitoring geopolitical developments related to the conflict resolution in Ukraine. Over the weekend, European politicians met in London to discuss the details of a European proposal for a partial ceasefire. The conclusions from the meeting indicate an increasing focus by European leaders on the continent's security, signaling a rise in defense spending.

Markets are coming to the realization that the responsibility for stabilizing the situation in Ukraine is shifting towards Europe. As a result, today’s key winners include the European defense sector. France's Thales has gained over 15%, Germany's Rheinmetall is up more than 14%, and Italy's Leonardo has risen by nearly 16%.

European nations have significantly increased their defense budgets in 2024, and these values are highly likely to remain similarly high in 2025. (Source: Bloomberg Financial LP)

The gains in this sector are fueling positive sentiment around major European indices today. DAX is up nearly 3%, climbing back above 23,000 points, while Switzerland's SMI has gained 1.4%, France's CAC40 is also up 1.4%, and Italy's IT40 has risen by more than 2.2%. The British FTSE 100 is seeing a more moderate increase, rising by approximately 1%.

DAX (D1 Interval)

The recent upward momentum in DAX has been impressive. Today, the German index has added another 2.71%, reaching 23,200 points, with a year-to-date (YTD) increase of 16.20%. In the event of a correction, key support levels for the bulls could be found around 23,000 points and 22,200 points.

Source: xStation 5