Did that surprise you? So why is DAX ahead so far in 2025 and what's next?
DAX ahead in 2025: currency-translation tailwind. For USD investors, a firmer EUR lifts euro-stock returns in USD.
Lars Klingbeil Minister of Finance, Germany. May of helped the DAX, too.
YTD Stock Index Scoreboard: DAX Still Leads the Pack
For long‑term investors tracking indices only, the green bars tell the story. Year to date in USD terms: DAX +15.8%, Nikkei 225 +14.7%, Nasdaq 100 +13.6%, Euro Stoxx 50 +12.8%, S&P 500 +10.2%, Russell 2000 +7.4%, DJIA +6.3%. The winner so far is still the DAX.
So far in 2025, indices have managed steady gains with the DAX still leading, up almost 16%, while the Nikkei 225 and Nasdaq 100 also post double-digit returns. Yet the story beneath the green bars is nuanced. As investingLive, formerly ForexLive notes, many investors are waiting for a pullback before adding risk, creating a “wall of cash” on the sidelines that could cushion any dip but also limit upside. Meanwhile, central banks remain cautious: ECB’s Makhlouf has warned about structural headwinds such as aging populations, while the Swiss National Bank is keeping clear of negative rates, signaling that ultra-loose policy is unlikely to return soon. Together, these factors suggest that while equity indices are in positive territory, long-term drivers and central bank caution may keep rallies more measured than investors might hope.
YTD stock indices performance
Why the DAX is ahead in 2025
Currency translation tailwind
For USD‑based investors, a stronger euro has boosted euro‑area equity returns when translated back into dollars. That lift alone helps the DAX screen better than peers in USD terms.
Sector mix that fits this phase
The DAX is heavy in global exporters, industrials, autos, capital goods and software. A rebound in global capex, factory automation and AI‑related digital spending has supported names tied to equipment, engineering and enterprise software.
Lower starting valuations
Europe, including Germany, entered the year at a discount to U.S. megacaps. Multiple expansion from a cheaper base, plus attractive dividend yields, made total returns more competitive.
Earnings resilience and shareholder returns
Several DAX constituents delivered steadier‑than‑feared results, increased buybacks or maintained strong dividends. That combination has kept capital committed.
Macro relief compared with 2022–2023
Energy costs stabilized versus the prior shock, supply chains improved, and clearer ECB policy guidance reduced uncertainty. Even modest improvements can go a long way for cyclical exporters.
What long‑term investors should watch next
Currency risk
If the euro reverses lower, USD‑based returns from the DAX can compress. Decide whether to hold exposure hedged or unhedged.
Global demand for German exports
The index is sensitive to China, the U.S. and broader manufacturing cycles. A slowdown in any of these can hit earnings quickly.
Sector concentration
Strength has leaned on industrials, autos and a few large software and healthcare names. Diversifying within Europe can reduce single‑country or single‑sector risk.
The DAX has earned its lead so far, helped by currency translation, sector composition and a valuation catch‑up. For investors building or rebalancing international exposure, those drivers are worth weighing alongside risk controls. For intraday context and curated signals, visit the LiveBytes stream at the top right of investingLive.com, formerly ForexLive.com. This is information only and not financial advice.
YTD Stock Index Scoreboard: DAX Still Leads the Pack
For long‑term investors tracking indices only, the green bars tell the story. Year to date in USD terms: DAX +15.8%, Nikkei 225 +14.7%, Nasdaq 100 +13.6%, Euro Stoxx 50 +12.8%, S&P 500 +10.2%, Russell 2000 +7.4%, DJIA +6.3%. The winner so far is still the DAX.
So far in 2025, indices have managed steady gains with the DAX still leading, up almost 16%, while the Nikkei 225 and Nasdaq 100 also post double-digit returns. Yet the story beneath the green bars is nuanced. As investingLive, formerly ForexLive notes, many investors are waiting for a pullback before adding risk, creating a “wall of cash” on the sidelines that could cushion any dip but also limit upside. Meanwhile, central banks remain cautious: ECB’s Makhlouf has warned about structural headwinds such as aging populations, while the Swiss National Bank is keeping clear of negative rates, signaling that ultra-loose policy is unlikely to return soon. Together, these factors suggest that while equity indices are in positive territory, long-term drivers and central bank caution may keep rallies more measured than investors might hope.
YTD stock indices performance
Why the DAX is ahead in 2025
Currency translation tailwind
For USD‑based investors, a stronger euro has boosted euro‑area equity returns when translated back into dollars. That lift alone helps the DAX screen better than peers in USD terms.
Sector mix that fits this phase
The DAX is heavy in global exporters, industrials, autos, capital goods and software. A rebound in global capex, factory automation and AI‑related digital spending has supported names tied to equipment, engineering and enterprise software.
Lower starting valuations
Europe, including Germany, entered the year at a discount to U.S. megacaps. Multiple expansion from a cheaper base, plus attractive dividend yields, made total returns more competitive.
Earnings resilience and shareholder returns
Several DAX constituents delivered steadier‑than‑feared results, increased buybacks or maintained strong dividends. That combination has kept capital committed.
Macro relief compared with 2022–2023
Energy costs stabilized versus the prior shock, supply chains improved, and clearer ECB policy guidance reduced uncertainty. Even modest improvements can go a long way for cyclical exporters.
What long‑term investors should watch next
Currency risk
If the euro reverses lower, USD‑based returns from the DAX can compress. Decide whether to hold exposure hedged or unhedged.
Global demand for German exports
The index is sensitive to China, the U.S. and broader manufacturing cycles. A slowdown in any of these can hit earnings quickly.
Sector concentration
Strength has leaned on industrials, autos and a few large software and healthcare names. Diversifying within Europe can reduce single‑country or single‑sector risk.
The DAX has earned its lead so far, helped by currency translation, sector composition and a valuation catch‑up. For investors building or rebalancing international exposure, those drivers are worth weighing alongside risk controls. For intraday context and curated signals, visit the LiveBytes stream at the top right of investingLive.com, formerly ForexLive.com. This is information only and not financial advice.
Head of Strategy at investingLive.com (formerly ForexLive.com), with 25 years of business experience and over a decade in investing, equities & real estate. Holding an MBA and a BS in Computer Science, he combines technical expertise with strategic insight to deliver actionable perspectives on the markets. At investingLive.com, Levitan leads efforts to provide actionable analysis, trade ideas & decision support for traders and investors. Focuses on reward-to-risk strategies, while dedicating over 15,000 hours to chart study and producing forecasts and trade ideas. As an advanced user of AI in finance, he works at the junction of data, methodology, and markets, seeing AI as a driver of productivity, innovation, and deeper investigation. His focus is on practical trading and real-world analysis. “We live in a fascinating time where AI opens new doors and creates strategies. For someone who loves strategy and markets, this is a playground ever-changing and endlessly interesting.”
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
