Market: still buoyed by the Trump effect
"Equity investors are filling up, as promised tax cuts and deregulation policies should boost corporate earnings", says Bruno Lamoral, portfolio manager at DPAM.
Investors have remembered that his first presidency was marked by high volatility in financial assets, but above all by a 68% rise in the S&P500", points out Christopher Dembik, Investment Strategy Advisor at Pictet AM.
The strength of Wall Street - which could be confirmed this afternoon after Donald Trump's announcement of a gigantic investment plan in artificial intelligence - seems to be primarily benefiting the Frankfurt Stock Exchange on the Old Continent.
It's worth remembering that the DAX has held up well against Germany's economic slump, Europe's weakness and China's uncertainties... because the USA has become Germany's biggest trading partner", points out Alexandre Baradez.
Faced with the good performance of the US economy in 2024, investors have opted to continue buying the DAX, stretching its valuation multiples", continues the head of market analysis at IG France.
Leading the way in Frankfurt on Wednesday, adidas jumped by over 6% after announcing a much better-than-expected performance for its fourth quarter 2024 and optimism despite the current economic uncertainty.
Also in European stock news, Barry Callebaut dropped 6% in Zurich, the chocolate maker having lowered its sales volume forecast for its 2024-25 financial year due to soaring cocoa bean prices, which are penalizing demand.
easyJet lost almost 3% in London, despite losses halved in its first quarter to the end of December, and confidence in its ability to meet consensus forecasts for the 2024-25 financial year.
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