GER 40 Index Weekly Special Report based on 1.00 Lot Calculation:
GER 40 INDEX:
- The GER40 index represents the DAX 40 index in Germany, which includes companies such as Adidas, Bayer, Mercedes-Benz, Deutsche Bank, Siemens, BMW, E.ON, etc. In essence, the index includes the most valuable and advanced companies in Germany, the largest economy in Europe.
GERMANY POLITICAL SCENE: FRIEDRICH MERZ ELECTED CHANCELLOR
- BREAKING (MAY 6): FRIEDRICH MERZ ELECTED IN SECOND BUNDESTAG VOTE. CDU leader Friedrich Merz secured 325 votes in the second parliamentary vote, officially becoming Germany’s new Chancellor.
- MARKET REACTION: GER40 STABILIZES. GER40 index jumped in its price as investors welcomed the political clarity. A Merz-led government is expected to pursue pro-business reforms.
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: 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: Trade commissioner Sefrovic visited the US for talks on trade saying that they are ready for fair deals through 0-for-0 tariff offer on industrial goods.
IMPACT/WEIGHT OF CAR MANUFACTURERS ON THE GER 40 INDEX:
- The automotive industry accounts for 10-15% of the GER40's total market capitalization, making it one of the most influential sectors.
- Volkswagen alone is among the top constituents, often holding a weight of around 4-5% of the index.
- BMW and Mercedes-Benz each contribute an additional 3-4%.
GER40, May 12, 2025
Current Price: 23,870
|
GER40 |
Weekly |
|
Trend direction |
|
|
25,500 |
|
|
25,000 |
|
|
24,500 |
|
|
23,300 |
|
|
23,150 |
|
|
23,000 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
GER40 |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
18,155 |
12,586 |
7,017 |
-6,349 |
-8,019 |
-9,690 |
|
Profit or loss in €² |
16,300 |
11,300 |
6,300 |
-5,700 |
-7,200 |
-8,700 |
|
Profit or loss in £² |
13,757 |
9,537 |
5,317 |
-4,811 |
-6,077 |
-7,343 |
|
Profit or loss in C$² |
25,347 |
17,572 |
9,797 |
-8,864 |
-11,196 |
-13,529 |
- 1.00 lot is equivalent of 10 units
- Calculations for exchange rate used as of 10:30 (GMT+1) 12/5/2025
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.