DAX Stays Close to Record as Markets Eye Trump’s Inauguration

DAX Poised for Another Record
Following three consecutive record-breaking sessions, even minor gains on Monday could be enough for the DAX to hit a new all-time high. Ahead of the market opening, IG brokers estimated Germany’s leading index up by 0.1% at 20,920 points—just shy of its previous record.

Donald Trump’s inauguration as the 47th President of the United States marks a pivotal moment for global markets. Trump assumes office in Washington, D.C., succeeding Democratic President Joe Biden, who previously unseated him. “The policy agenda of the new Trump administration will play a critical role in shaping market trends in the coming months,” noted Nelson Yu, an equity analyst at asset manager Alliance Bernstein, in a morning report.

Optimism at U.S. Markets Ahead of Trump’s Presidency
U.S. markets ended last week on a high note, with strong gains on Friday signaling investor confidence ahead of Trump’s swearing-in ceremony. A robust start to earnings season, coupled with optimistic interest rate expectations, buoyed sentiment. December’s unexpectedly strong industrial production figures did little to dampen hopes for future rate cuts.

The Dow Jones Industrial Average climbed 0.78% to close at 43,487.83 points, while inflation data released two days prior eased pressure on bond yields. This contributed to a more favorable environment for equities, further strengthening the market outlook.

Asian Markets See Gains Ahead of Trump’s Inauguration
Major Asian indices mirrored the positive sentiment from the U.S., with gains reported across the region on Monday. Japan’s Nikkei 225 rose by 1.1% as the session neared its end. China’s CSI 300, which tracks key mainland stocks, climbed 0.7%, and Hong Kong’s Hang Seng surged 2.3% late in the trading day.

Adding to the global focus on Trump’s inauguration, Chinese Vice President Han Zheng met with Trump’s designated Vice President J.D. Vance and tech entrepreneur Elon Musk over the weekend. According to Trump’s transition team, their discussions covered key topics such as U.S.-China trade, regional stability, and the opioid crisis, including the role of fentanyl in America’s drug epidemic.

Market Snapshot

• DAX: 20,903.39 (+1.20%)
• EuroStoxx 50: 5,148.30 (+0.81%)
• Dow Jones Industrial Average: 43,487.83 (+0.78%)
• S&P 500: 5,996.66 (+1.00%)
• Nasdaq 100: 21,441.15 (+1.66%)

Bonds, Currencies, and Commodities

• Euro/USD: 1.0304 (+0.28%)
• USD/Yen: 156.01 (-0.09%)
• Bitcoin: 102,276 (+1.03%)
• Bund Future: 131.68 (-0.08%)

Global markets remain optimistic, with the DAX and other indices responding positively to the changing political and economic landscape. Investors will closely monitor the early days of the Trump administration for signals on trade, fiscal policy, and geopolitical strategy.