Germany's DAX index breaks through 25,000 points for the first time... Europe's stock market "big rebound" begins

Germany’s flagship stock index DAX first surpassed the 25,000-point mark on January 7, 2026. This is the result of continuous record highs since the beginning of this year and is expected to serve as a positive signal for the global financial markets.

According to the Frankfurt Stock Exchange, the DAX index opened the day up 0.55% from the previous trading day, at 25,029.64 points, and reached a new high during the session. The DAX index reflects the stock prices of the top 40 publicly listed companies in Germany by market capitalization and is considered a key indicator of the health of the European economy.

The recent rise in the index appears to reflect more a shift in broad investor sentiment rather than short-term event-driven factors. Consois Bank market analyst noted that recent market expectations suggest that tensions between the US and Venezuela are unlikely to escalate into military conflict, and the anticipated decline in oil prices has positively influenced investment sentiment. Additionally, increased investment demand outside the US, especially in European stock markets, has also heightened attention on the German stock market.

In terms of sector performance, the recent leading sectors are not the traditionally strong automotive industry, but rather military stocks driven by the expansion of defense budgets across European countries. Rheinmetall, a top seven military enterprise by market cap, saw its stock price increase by 184% over the past year. Major military companies like Kongsberg Gruppen and Hensoldt also achieved returns of 210% and 135%, respectively.

Since breaking the 20,000-point mark for the first time in December 2024, the DAX index has continued to rise rapidly. Last year, the index hit a new high 34 times, with an annual cumulative increase of 23%. This is interpreted as investors’ optimistic outlook on Europe’s economic recovery and the structural transformation of the German industry.

This trend indicates that Europe’s share of the global financial market may increase in the future. Especially if geopolitical uncertainties decrease or the growth potential of US stocks slows down, the inflow of funds into Germany and European markets could accelerate further. In the medium to long term, Germany’s stock market is expected to establish itself as a new investment target around growth industries such as military technology, artificial intelligence, and environmental protection.