Dax robust: The stock market has one less worry

There's still some good news. What will ultimately come of the trade talks between the US and China is anyone's guess. But the unexpectedly constructive start a week ago in Geneva has already achieved one thing: the risk of a US recession this year has decreased significantly. Most of the mutual tariffs have been suspended for 90 days, and container ships are once again making their way to China to fill US shelves.

However, this doesn't change the major risk posed by Trump; the president's budget plans and his dispute with the Federal Reserve, in particular, will turn some hair gray in the coming months. And, of course, the tariff issue is far from off the table.

But at least the rapprochement between the US and China has temporarily defused a major conflict. This makes companies more optimistic, and investors even more so. The decline of the V-Dax below 20 points indicates that a more stable development is expected after the wild market fluctuations.

Stocks have also picked up again in the US, with the S&P 500 more than offsetting the tariff shock of early April at just over 5,900 points. However, the lag behind the Europeans remains significant this year.

The S&P is at the same level as it began the year, the Eurostoxx 50 has gained about 10 percent since then, and the DAX has gained almost 20 percent – ​​despite the mini-crash following Trump's "Liberation Day." While Friday's closing price wasn't quite enough for a record (last reading: 23,911 points), with over 23,700 points at the Xetra close, nothing is lost yet.

The sigh of relief in Winterbach could probably be heard as far away as Frankfurt. In this Stuttgart suburb, the family-owned company Pfisterer had decided to go public – a rare occurrence in Germany these days, especially in such turbulent times.

But on paper, everything looks good. The power grid components business promises robust business and growth, and with recent sales of €380 million, there's still some room for improvement. Approximately €100 million from the issue proceeds are expected to help with this. The €27 issue price – the midpoint of the planned range – corresponds to an enterprise value of €489 million.

At least the debut on Wednesday was a success. On the first day of trading, the price temporarily rose above €31. Then it crumbled somewhat, but the stock remained at around €30 for the rest of the week.

Stefan Winter is the business editor of RND. He writes weekly about the stock market, financial markets, the rise and fall of share prices—and the companies behind them.