(Bloomberg) -- The stock index that U.S. President Donald Trump singled out in his criticism of European Central Bank policy this month is poised for its biggest June rally in 16 years.
Boosted by optimism about looser monetary policy in the euro area and a rebound in carmakers, Germany's benchmark DAX Index has climbed 5% this month, in what has historically been a weak period for the country's equities. A close at this level will mark its best June since 2003.
While the DAX declined in the past three sessions along with the broader market, it rebounded on Wednesday after the U.S. was said to be willing to suspend the next round of tariffs on an additional $300 billion of Chinese imports. The index climbed 0.7% as of 12:21 p.m. in Frankfurt, among the best performers in western Europe.
The gauge posted its biggest advance in five months on June 18 after ECB President Mario Draghi said more stimulus would be needed if the euro-area economic outlook doesn't improve, prompting Trump to note the rally in a tweet, calling it “very unfair” to the U.S.
To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net
To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, John Viljoen, Jon Menon
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