FX.co ★ DAX on Track for Best Year Since 2019

The DAX index in Frankfurt concluded the year around 24,345, remaining close to its two-week peak amid subdued trading volumes and the influence of year-end portfolio adjustments. Market participants are eagerly awaiting the release of the minutes from the latest Federal Reserve meeting. These minutes are anticipated to highlight a divided central bank grappling with uncertainty regarding next year’s monetary policy direction. On the geopolitical front, tensions persist with stalled Ukraine peace talks, escalating tensions between the U.S. and Iran following threats from President Donald Trump, and ongoing friction with Venezuela. Defense and banking stocks provided a cushion for the index, with Rheinmetall leading the uptick by gaining 1.8%, trailed closely by Renk at 1.7%, and Hensoldt at 1.6%. In the banking sector, Commerzbank and Deutsche Bank saw gains of 0.9% and 0.3%, respectively. Conversely, auto stocks felt some downward pressure, with BMW slipping by 0.8% and Porsche by 0.5%. As for the entire year, the DAX is poised to conclude 2025 with an increase of over 22%, marking its most robust annual performance since 2019.