Markets Stock market recovers thanks to customs rumors and Germany package
The stock markets in Switzerland and Europe recovered on Wednesday from the previous day's sharp losses.
05.03.2025, 10:10
SDA
They were supported by new rumors that the USA could withdraw some of the tariffs it had imposed just a day earlier. Overall, however, there is still a great deal of uncertainty, as important decisions could change almost by the minute, especially with regard to Washington, according to market circles.
Shares - particularly in Germany - are also receiving a tailwind from what has been described as Germany's "historic" financial package for defense and infrastructure, which was put together by the CDU/CSU and SPD the previous evening. For Germany's leading index, the Dax, this is "like a huge economic stimulus package", said one trader.
Other drivers for share prices are news from China. The annual session of the People's Congress has begun there. Premier Li Qiang announced an economic growth target of "around five percent" for the current year, which is seen as good news in market circles. In addition, the mood among China's service providers has improved.
There is also hope with regard to Ukraine. After the scandal at the weekend, new talks now seem more likely again.
This mix of positive news is prompting investors on the stock markets to take hold again after yesterday's dip. In Switzerland, the leading SMI index was around 0.8 percent higher at around 10 a.m. than the previous day, when it had lost 1.2 percent.
Cyclically sensitive stocks in particular are making significant gains, such as Adecco, ABB, Holcim and Sika, which are up 4 to 5 percent. In contrast to the previous day, the defensive heavyweights Nestlé, Novartis and Roche are not in demand.
The current gain of around 3 percent in the German Dax in Frankfurt looks spectacular, although it has not yet made up for Tuesday's losses of around 3.5 percent. In Paris, the French CAC is almost 2 percent higher.
