Trade breakthrough: German stock markets benefit from USA-China agreement!

Trade breakthrough: German stock markets benefit from USA-China agreement!

The positive news from international trade is currently providing a breath of fresh air on the German stock markets. Progress in the trade pact between the USA and China is causing prices to rise, and companies like Salzgitter and Infineon are benefiting significantly from this positive development. How IT Boltwise Reportedly, a tentative agreement between the two major powers was recently announced. Li Chenggang, deputy secretary of China's Ministry of Commerce, made the good news public, while US Treasury Secretary Scott Bessent confirmed progress in dialogues between the two countries.

Companies active in the steel sector can look forward to a significant price increase. Salzgitter was able to increase its share price by 4.1 percent, while Thyssenkrupp and Klöckner & Co also achieved gains of up to 2.5 percent. The positive market reaction confirms that the US-China deal could potentially boost global demand for industrial metals. This shows how strongly the development of international trade influences the domestic economy.

The influence of trade relations

The trade relations between Germany and the USA have grown historically and are based on decades of cooperation that have existed since the end of the Second World War. The USA is now Germany's largest trading partner, followed by countries such as Mexico, Canada and China. In 2024, Germany exported goods worth about 161.4 billion euros to the USA, while imports from the USA fell to about 91.6 billion euros. Germany benefited from a trade surplus of around 69.8 billion euros Statista determines.

However, there are also challenging aspects to consider. The tensions that emerged under the second Trump administration have strained economic relations. The high tariffs on steel and aluminum, which amount to up to 50 percent, have a particularly negative impact on the German automotive industry. The tariffs against Germany are 15 percent and will lead to a predicted decline in Germany's GDP of around 0.2 percent.

The opportunities in international competition

Nevertheless, there are also positive signals: German companies are increasingly investing in the USA and have around 6,173 companies with German capital there, which create around 1 million jobs. With a capital stock of German direct investments (FDI) in the USA of around 506.2 billion US dollars, it shows that German-American relations remain strong, despite all the difficulties.

In summary, recent advances in US-China trade are not only boosting the stock markets, but are also having far-reaching implications for Germany's trade relations. Analysts are optimistic that markets will benefit from these developments not only in the short term but also in the future. It remains to be seen whether the agreement between the USA and China will actually help stabilize global trade relations and how this will affect the German economy.