Dax 40 Index Shows Exhaustion after Reaching Record Highs, Spain’s Ibex 35 Gains
Market activity was comparatively muted due to Europe's public holidays, although Dax pulled back from the highs, and a noteworthy legal...
Quick overview
- European markets experienced subdued trading activity due to public holidays, with the DAX retreating from recent highs.
- A significant U.S. court ruling halted the implementation of reciprocal tariffs from Trump's administration, causing market analysis and caution.
- Despite the legal setback, Trump is preparing to appeal the ruling, with potential alternative tariff measures available, though complex.
- Most European indices closed in the red, except for Spain's IBEX 35, reflecting cautious investor sentiment ahead of upcoming economic data.
Market activity was comparatively muted due to Europe’s public holidays, although Dax pulled back from the highs, and a noteworthy legal development in the US gave the day’s trading story a twist.
Tariff Reversal Sends Ripples Amid Light Trade
A number of European markets—including Germany, France, and Switzerland—experienced reduced volume due to national holidays, resulting in a relatively calm trading session. Still, attention briefly shifted to Washington overnight as the U.S. Court of International Trade moved to halt the implementation of reciprocal tariffs initiated under President Trump’s administration.
Although this court decision put a pause on a key enforcement mechanism of Trump’s trade agenda, sector-specific tariffs on products such as semiconductors, steel, aluminum, and automobiles remain firmly in place. The decision prompted a wave of analysis across global markets, particularly in Europe where industries linked to U.S. trade policy were watching closely.
Trump Eyes Appeal and Alternative Tools
Despite the legal setback, former President Trump is reportedly preparing to fast-track an appeal in an effort to overturn the court’s ruling. Success remains uncertain, but even if the appeal fails, Trump retains several legal pathways to reinstate or modify tariff measures.
One such route could be the invocation of Section 122 of the Trade Act, a mechanism that allows for temporary tariff actions under specific national security or balance of payments conditions. However, this process is complex and could take several months to implement, offering little immediate resolution for markets.
Markets React Modestly as Caution Returns
European equities opened higher earlier in the session but gradually lost momentum as the day progressed. By the close, most indices had slipped into negative territory, unwinding early gains. Germany’s DAX 40 index, which had reached a record high earlier in the week, fell 0.44% to close at 23,933.23.
DAX Chart Weekly – Showing Exhaustion at the Top 
Other major European indices followed a similar path, retreating slightly amid the low-volume session. One outlier was Spain’s Ibex 35, which managed to edge higher, marking it as the exception on a day otherwise dominated by light profit-taking and policy uncertainty.
Closing Snapshot: Major European Stock Indices (May 29, 2025)
- Germany’s DAX 40 ended the session at 23,933.23, falling by -104.96 points or -0.44%, reflecting moderate profit-taking after a recent record-setting run.
- France’s CAC 40 dipped slightly, closing at 7,779.72, a decline of -8.38 points or -0.11%, suggesting a cautious mood among investors ahead of key inflation data.
- UK’s FTSE All-Share Index slipped to 539.86, down -0.59 points or -0.11%, as traders weighed interest rate uncertainty and mixed earnings reports.
- Spain’s IBEX 35 bucked the trend, climbing +16.00 points to finish at 14,116.60, up +0.11%, supported by strength in financials and energy stocks.
- Italy’s FTSE MIB Total Return Index declined by -144.78 points or -0.36%, settling at 39,982.97, dragged lower by declines in industrial and utility sectors.
Conclusion: European markets closed largely in the red, with Spain’s IBEX 35 as the lone gainer, reflecting relative strength in southern European equities. Broader sentiment was weighed down by geopolitical risks, central bank caution, and investor positioning ahead of U.S. inflation and jobs data. The day’s movement suggests a wait-and-see approach is dominating sentiment as global investors assess the next directional cues.
German Index DAX 40 Live Chart
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