Top catalysts for DAX Index and best stocks of 2025 revealed

The DAX Index remained in a tight range in the past few weeks s most of its constituent companies published stronger-than-expected financial results. It was trading at €24,360, a few points below the year-to-date high of €24,635. This article looks at the top-gainers this year.

Key catalysts for the DAX Index this year

There were several key catalysts for the German DAX this year. First, market participants reacted to the recently announced deal between the US and the European Union.

This deal will see European companies pay a 15% tariff to the US, a move that will affect some of the biggest constituent companies. Porsche, which is partly owned by Volkswagen Group, will be the most affected because it counts the US as the most important market.

The most recent results showed that its European and Chinese businesses slowed, while the US one continued to accelerate. Porsche makes its vehicles in the United States.

The DAX Index also reacted to the actions by the European Central Bank (ECB). Unlike the Federal Reserve, the bank delivered several interest rate cuts this year, bringing the official cash rate to 2%.

In theory, falling ECB interest rate cuts should lead to lower bond yields, attracting investors to equities. Recently, however, German bonds have continued to sell off, with the ten-year rising to 2.78%, its highest point since March 24 this year.

The DAX was also moved by the robust government spending after the parliament voted for a €500 bilion spending package. 

Top DAX Index gainers of this year

The Rheinmetall share price has surged by over 112% this year, making it the best performer in the DAX Index. Its surge happened as the German government boosted its defense spending as the war in Ukraine continued.

With the US taking a tough stance against Europe, the governments have embarked on the modernization of their defence bases by focusing on European companies. 

The most recent results showed that its group sales jumped by 24% to €4.7 billion, with its defence segment growing by 36%. Its backlog jumped to a record high of €63 billion, up from €63 billion in the same period last year. 

Commerzbank share price jumped by 138% this year, helped by the ongoing accumulation by Unicredit, the giant Italian bank and the ongoing surge in European bank stocks. 

Unicredit has hinted that it would launch an acquisition bid either this year or in 2026. The risk, however, is that Commerzbank has become a highly overvalued company as it has jumped by almost 200% in the last 12 months.

Siemens Energy is another top gainer in the DAX Index as it jumped by 88% this year an 24% in the last three months. The company has continued to benefit from the ongoing turnaround and robust order intake. 

Siemens Energy’s revenue grew by 13.5% in the last quarter to €9.7 billion, while its order intake jumped to €16.6 billion. Its profit before special items rose to €497 million, much higher than the €49 million it had in the same period last year.

Deutsche Bank’s share price has jumped by 63% this year, helped by the ongoing surge in profits. The most recent numbers showed that its trading business boomed, helped by the volatility brought about by Donald Trump’s tariffs. 

The other top gainers in the DAX Index were companies like Heidelberg Materials and Bayer. E. ON, Allianz, Siemens, and Deutsche Post. 

Adidas, the top sporting apparel company, was the top laggard in the index as its growth decelerated. The other top losers in the German DAX were firms like Zalando, Symrise, Porsche, Merck, and Beiersdorf.

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