Germany and France Break Stock Market Records
Germany has just emerged from federal elections with an unsurprising outcome: a victory for the CDU, the country’s traditional ruling party, which will be able to govern alongside the other major historic party, the SPD.
These elections took place while Germany remains in a recession, with the country experiencing two consecutive years of GDP contraction.
German Stock Market
The German economic engine appears to be sputtering. However, the stock market tells a different story, as it has just reached all-time highs.
The country’s benchmark index, the DAX, has surged 48% over the past two years and nearly 13% so far in 2025. This month, it hit its highest levels in history, standing in stark contrast to Germany’s sluggish economy. Looking ahead, Frankfurt’s stock exchange is also expected to lead in growth over the next two years.
Market forecasts predict that the DAX’s earnings per share (EPS) will rise by more than 25% between 2024 and 2026, far surpassing the estimated 15% increase for its French counterpart, the CAC 40, and a similar growth rate for the Euro Stoxx 50.
Both the German and French indices are well ahead of other major European markets, while Spain’s IBEX 35 lags behind, with expected growth of less than 8%.
DAX Characteristics
It’s important to note that 15% of the DAX is made up of SAP, a predominantly global company. Siemens accounts for 10%, Allianz nearly 8%, and Deutsche Telekom another 8%. In the case of Deutsche Telekom, 60% of its EBITDA comes from the United States.
The most influential companies in the index have a strong global presence, with some, like software giant SAP, operating in the technology sector.
ABOUT THE AUTHOR
See More
Sidebar rates
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals