The DAX is performing well and remains the best European index in 2025
The German stock index, the DAX, continues to be one of the best-performing indices in Europe in 2025. It is once again close to its all-time high, exceeding 23,500 points. Since the beginning of the year, the DAX has grown by +18.37%, which is well above that of the other major European indices and more than 10 points higher than the shares in France and Great Britain.
In recent months, the DAX has benefited from a combination of factors, including expectations of fiscal expansion in Germany, monetary easing by the ECB and capital inflows, which are also due to weakness in US markets.
The two charts show the ‘golden’ moment for German equities.
The graph above illustrates the evolution of the relative strength index between the DAX and the EuroStoxx 600. The situation is quite clear. The German stock index has outperformed the pan-European index over almost the entire one-year time horizon. It is a bullish trend that does not currently show any major signs of slowing down.
Analysing the strength ratio between the DAX and an accumulating, euro-denominated ETF on the S&P 500, one can see the positive momentum of German equities compared to the main US index. In particular, the crossing of the 50- and 200-day averages at the start of March provided the indicator with an additional boost.
