Europe close: Dax hits fresh high ahead of US-China trade talks
By Alexander Bueso
Date: Friday 09 May 2025
(Sharecast News) - European equities were up on Friday, with Germany's DAX hitting record highs, thus recovering all the ground lost during the Donald Trump-inspired tariff turmoil.
"European and US stock indices finished the week in positive territory as investors eyed this weekend's US-China trade talks in Geneva with cautious optimism," said Axel Rudolph, senior technical analyst at IG.
The pan-regional Stoxx 600 index was up 0.34% at 537.47. The DAX rose 0.43% and hit its fresh high of 23,543.27 in late afternoon trading.
Meanwhile investors assessed the relatively few details revealed in the much-hailed UK and US trade agreement and looked ahead to talks between Washington and China on tariffs on Saturday.
"Not only do we have a new pope this week, but we also have the first deal in Trump's global trade war - between the UK and the US. Trump's enthusiastic announcement, complete with a lot of CAPITAL LETTERS, helped inflate sentiment, making this US-UK deal feel bigger than it actually is," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
"The fact that the two countries could agree on a few points is a good start, but the UK entered the negotiations with a tariff rate of 10% and left the table with... a tariff rate of 10%."
Meanwhile China exports jumped by 8.1% year on year in April, beating forecasts for a 1.9% rise, while imports dipped by 0.2%. The increase came despite a slump in trade with the US amid the ongoing tariff war.
Shipments to the US fell 21% as tariffs imposed on China by US President Donald Trump rose to 145% during April. Imports from America fell almost 14% after Beijing's retaliated with levies of 125%.
In equity news, vaccine developer Bavarian Nordic surged 6% on first-quarter results.
BP shares were 5% higher after a Financial Times report said Shell, Chevron, Exxon Mobil, TotalEnergies and ADNOC had run the numbers for a possible takeover of the energy giant.
Airbus shares were up slightly as British Airways owner IAG placed a large order for its jets, while the airline group was higher after surging first-quarter earnings.
Commerzbank shares added 4% after the German lender posted an unexpected increase in first-quarter profit growth.
Sonova climbed 3% after the Swiss hearing aids maker forecast higher sales and profitability for its 2025/26 fiscal year.
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