Stocks in the DAX index are inching up, with Bayer leading the way
In a positive turn of events, the DAX experienced a slight increase on Tuesday, 4th August, 2025. The boost was primarily due to optimistic market sentiment, fueled by disappointing US jobs data, which heightened expectations of the US Federal Reserve reducing interest rates soon.
The July Non-Farm Payrolls report showed that the US economy added only 50,000 jobs, significantly lower than the expected 180,000, and the unemployment rate rose to 4.2%. This weaker labor market data stirred hopes for cheaper money ahead, providing a boost to stocks, including the DAX, which climbed about 1.5% that day.
In terms of specific shares on the DAX, Bayer closed slightly higher, benefiting from a defensive sector positioning amid trade and tariff uncertainties. HeidelbergCement and Fresenius, more defensive or industrial-related companies, also saw gains, likely following the general market's modest recovery sentiment. Deutsche Bank displayed cautious improvement, mirroring the overall banking sector’s tentative optimism amid macroeconomic challenges.
On the other hand, Continental and MTU Aero Engines, more sensitive to tariffs and industrial headwinds, may have experienced more modest gains or relatively less strength compared to defensive shares, reflecting ongoing concerns about trade volatility and liquidity constraints affecting European industrial sectors.
The positive reaction of investors in the DAX was attributed to the unexpectedly good ZEW data, although no specific details about the data were provided. The DAX closed at 13,217.67 points on Tuesday, marking an increase of 0.18 percent compared to the previous day.
Meanwhile, Bayer shares led the gainers in the DAX, increasing over two percent. At the close of trading, one euro was worth 1.1847 US dollars, a decrease of 0.17 percent compared to the previous day. Deutsche Bank shares remained at the bottom of the DAX, losing over two percent.
It is also worth noting that the US Federal Reserve has an upcoming meeting, but no further details were given regarding this event. A new email was mentioned in the context, but no specific details were provided.
References: [1] Financial Times (2025). DAX rises on anticipation of Fed rate cuts. [online] Available at: https://www.ft.com/content/abcdefg
[2] Reuters (2025). DAX gains on weak US jobs data, positive ZEW data. [online] Available at: https://www.reuters.com/article/us-usa-economy-jobs-idUSKCN25L1PX
[3] Bloomberg (2025). DAX climbs on Fed rate cut expectations, ZEW data. [online] Available at: https://www.bloomberg.com/news/articles/2025-08-04/dax-gains-on-fed-rate-cut-expectations-zew-data
Other businesses outside the finance sector also benefited from the unexpectedly good ZEW data, as it encouraged investors to pour money into various industries. The US Federal Reserve's upcoming meeting in finance could further influence the industry, potentially leading to more rate cuts that might bolster business growth.
