GER 40

GER 40 Weekly Special Report based on 1.00 Lot Calculation:

GER 40:

• The GER40 represents the DAX 40 in Germany, which includes companies such as Adidas, Bayer, Mercedes-Benz, Deutsche Bank, Siemens, BMW, E.ON, etc. In essence, GER40 includes the most valuable and advanced companies in Germany, the largest economy in Europe.

CENTRAL BANKS:

• EVENT (THURSDAY, JUNE 5 AT 13:15 GMT+1): EUROPEAN CENTRAL BANK (ECB) INTEREST RATE DECISION. The ECB cut its benchmark interest rate in April from 2.65% to the current 2.40%, and investors expect the ECB could continue with their rate-cutting cycle on. If the ECB does decide on an interest rate cut, this could push the GER40 higher, as borrowing costs for businesses could become lower and therefore allow for the economy to grow and expand.
  
  STATISTICS: THE GER40 HIT AN ALL-TIME HIGH OF 24,272 (MAY 27, 2025): GER40 HAS RISEN AROUND 32% SINCE THE ECB STARTED CUTTING INTEREST RATES IN JUNE 2024. HOWEVER, THE PRICE COULD DECLINE.

U.S.–E.U. TARIFF DELAY EASES PRESSURE ON GERMAN EXPORTERS

• BREAKING (MAY 25): U.S. DELAYS 50% TARIFFS ON E.U. IMPORTS UNTIL JULY 9: The decision by the U.S. to postpone proposed 50% tariffs on European Union imports—originally set to begin on June 1—has eased immediate trade tensions. The extension follows a call between President Trump and EU Commission President von der Leyen, with both sides agreeing to use the additional time to pursue a potential trade agreement. This development provided relief for German export-oriented companies within the GER40, many of which are highly exposed to transatlantic trade flows.

US-CHINA TRADE DEAL: TARIFFS REDUCED

• BREAKING (MAY 12): US AND CHINA AGREE TO SLASH TARIFFS. Washington and Beijing reached a breakthrough deal in Geneva to cut mutual tariffs after months of escalation. The US will reduce tariffs on Chinese imports from 145% to 30%, while China will lower tariffs on American goods from 125% to 10%. The agreement takes effect immediately and will last for an initial 90-day period.
• GERMAN EXPORTERS BENEFIT. Key GER40-listed multinationals such as Volkswagen, Siemens, and BASF are expected to benefit from increased global demand and fewer supply chain disruptions, especially in Asia.

US AUTO TARIFFS AND TARIFF POLICY: EUROPE- U.S.A.

• BREAKING (APRIL 30): US PRESIDENT TRUMP SOFTENED AUTO TARIFFS. President Donald Trump signed executive orders to relax some of his 25% tariffs on automobiles and auto parts. This will allow carmakers to offset tariffs for imported auto parts used in U.S.-assembled vehicles. The amount they can offset is equal to 3.75% of the total value of the Manufacturer’s Suggested Retail Price of vehicles built through April 2026, and 2.5% of their total U.S. production through April 30, 2027.
• RECIPROCAL TARIFFS SUSPENDED BY 90 DAYS (April 9): US president Donald Trump suspended their reciprocal tariffs on the rest of the world by 90 days.
• TRADE NEGOTIATIONS TO BEGIN IMMEDIATELY: More than 90 countries called on Trump's administration to start trade and tariff negotiations immediately. President Trump directed tariff talks to begin immediately with South Korea, Japan and India.
• NEGOTIATIONS WITH EU: The negotiations between the US and the EU are expected to accelerate their pace as deal is expected to be reached by July 9, something that was agreed between US President Donald Trump and EU Commission President Ursula von der Leyen.

GER40, May 27, 2025
Current Price: 24,265

Example of calculation based on weekly trend direction for 1.00 Lot¹

1. 1.00 lot is equivalent of 10 units
2. Calculations for exchange rate used as of 10:50 (GMT+1) 27/5/2025

There is a possibility to use Stop-Loss and Take-Profit.

• You may wish to consider closing your position in profit, even if it is lower than suggested one.
• Trailing stop technique could protect the profit.