The benchmark index of the German stock market, DAX, experienced a significant increase on Thursday morning, as apprehensions regarding the trade war diminished. This shift followed U.S. President Donald Trump’s decision to abandon proposed tariffs on eight European nations and his declaration against the use of force to acquire Greenland. It is unlikely that we will achieve any results unless I opt to employ considerable strength and force, at which point we would, quite frankly, be unstoppable. However, I will refrain from taking that action. Understood? Trump stated during his address at the World Economic Forum in Davos, Switzerland, on Wednesday. Instead of resorting to military action, Trump advocated for “immediate negotiations” with Denmark to “discuss the acquisition of Greenland by the United States.”

NATO Secretary General Mark Rutte stated that he had a highly productive meeting with Trump on the sidelines of the World Economic Forum in Davos regarding NATO. Allies can collaborate to ensure Arctic security, encompassing not only Greenland but also the seven NATO nations with territory in the Arctic. Automobile equities experienced a notable surge, playing a crucial role in the market’s robust upward movement. The DAX experienced an increase of 299.34 points, reflecting a rise of 1.22%, reaching a level of 24,877.15 at midday.

Volkswagen, the largest car manufacturer in Europe, experienced a notable increase of 5.2% following the announcement of cash flow results that exceeded expectations for the financial year 2025. Porsche Automobil Holding experienced an increase of 2.7%, while both BMW and Mercedes-Benz saw gains of approximately 1.5%. Daimler Truck Holding also made progress, advancing nearly 1%. Deutsche Boerse experienced an increase of over 3% following the announcement of a landmark $5.3 billion acquisition of Amsterdam-listed fund trading platform Allfunds, a strategic move intended to enhance its standing in the European investment fund sector. Infineon Technologies experienced an increase of 4.3%. Siemens Energy, Deutsche Bank, Heidelberg Materials, Deutsche Telekom, Continental, and Zalando saw gains ranging from 2% to 3.5%. Bayer experienced a 2.7% increase following the announcement that its investigational cell therapy, OpCT-001, has been granted Orphan Drug Designation by the FDA for the treatment of retinitis pigmentosa.

Merck, Scout24, RWE, Siemens, Qiagen, Commerzbank, Munich RE, MTU Aero Engines, Hannover Rueck, Allianz, Siemens Healthineers, and E.ON experienced significant upward movement. Rheinmetall experienced a decline of 2.25%, while SAP saw a decrease of approximately 1.2%. Market participants anticipated the publication of the minutes from the European Central Bank’s monetary policy meeting. Following the meeting conducted on December 17 and 18, the ECB governing council decided to keep its key deposit rate unchanged at 2%.