DAX gains 0.8% despite trade uncertainty from Trump's policy signals

Germany's DAX index has advanced 0.8% to 18,750 points, shrugging off concerns about potential trade disruptions from President Trump's unpredictable policy stance. The rally comes as European markets benefit from a weaker dollar, with EUR/USD climbing 0.3% to 1.0845 amid risk-on sentiment. However, underlying fragility remains as traders await clarity on Trump's trade agenda, particularly regarding potential tariffs on European exports. The US Dollar Index has retreated 0.4% to 104.20, providing relief for risk assets globally. Market participants remain cautious about Trump's protectionist rhetoric, which could impact German exporters significantly given the country's trade surplus with the United States. Technical indicators suggest the DAX faces resistance at 18,850, while support has formed at 18,600. The index's correlation with EUR/USD strength suggests further gains possible if dollar weakness persists.