{"id":45423,"date":"2026-02-24T18:46:12","date_gmt":"2026-02-24T10:46:12","guid":{"rendered":"https:\/\/www.phillipnova.com.sg\/?post_type=market_trends&p=45423"},"modified":"2026-02-24T19:02:35","modified_gmt":"2026-02-24T11:02:35","slug":"dax-outlook-could-we-see-more-upside-to-come","status":"publish","type":"market_trends","link":"https:\/\/www.phillipnova.com.sg\/cn\/market_trends\/dax-outlook-could-we-see-more-upside-to-come\/","title":{"rendered":"DAX Outlook: Could We See More Upside To Come?"},"content":{"rendered":"
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\u8fd9 Micro <\/strong>DAX (Deutscher Aktienindex) Futures<\/strong> gives investors exposure to the 40 largest blue-chip German companies traded on the Frankfurt Stock Exchange. It represents about 80% of the market capitalization of listed stock corporations in Germany.<\/p>\n

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Top constituents include legacy automakers such as Bayerische Motoren Werke (BMW), Volkswagen, and Mercedes-Benz. <\/strong>Other notable companies that most people know of include Adidas, Siemens, SAP, Infineon, Allianz, and Airbus<\/strong>.<\/p>\n

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Germany\u2019s historical status as a manufacturing and export powerhouse has given it the world\u2019s 2nd<\/sup> largest trade surplus (exports outweigh imports), just behind China.<\/p>\n

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Transition to Fiscal Expansion<\/h3>\n

In a historically unprecedented fiscal policy shift, Germany amended its constitution to exempt defence and security outlays from its limits on fiscal spending, while also agreeing to launch a \u20ac500 billion infrastructure fund to invest in national priorities such as transportation, energy grids, and housing.<\/p>\n

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We believe this fiscal shift will remain for some time, with the US likely to pare back its security presence on the European continent, making defence spending all the more important.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Defence spending is expected to exceed 1% of GDP, partially funded by a loosening of the constitutional \u201cdebt brake\u201d. This has driven shares of defence company, Rheinmetall AG (+92.43% LTM)<\/strong> towards record highs. German bond yields rose because of expectations of higher debt issuance to fund higher fiscal outlays. The Euro, meanwhile, is at its strongest since 2021.<\/p>\n

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Economic Recovery<\/h3>\n

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The German economy was able to shift from consecutive years of stagnation toward a slow recovery driven by increased public spending. The Bundesbank cited growth in industry and notable strength in construction.<\/p>\n

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Monetary Policy<\/h3>\n

The ECB has maintained a supportive backdrop with gradual interest rate cuts to approximately\u00a02%.<\/p>\n

Recent reports suggest the ECB President Christine Lagarde could step down before her 8-year term ends in October 2027. Such a decision will likely add volatility to the trajectory for monetary policy.<\/p>\n

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Tariff Tensions<\/h3>\n

On\u00a0February 20, 2026, the US Supreme Court struck down reciprocal tariffs previously imposed by the Trump administration.<\/p>\n

This triggered a sharp rally in the export-heavy\u00a0automotive sector, with\u00a0Porsche (+1.53%), Mercedes-Benz (+1.08%), and\u00a0BMW (+0.44%)<\/strong>\u00a0seeing immediate gains.<\/p>\n

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Top Performing Sectors LTM (Last Twelve Months)<\/h3>\n