Germany's blue-chip DAX stock index jumped above 20,000 points for the first time Tuesday following gains on US and Asian markets, defying multiple headwinds battering Europe's biggest economy.

The index, which groups the 40 largest publicly-traded companies on the Frankfurt Stock Exchange, reached 20,022 points at around 0900 GMT before slightly paring its gains.

The German economy, hit hard by a manufacturing slowdown and weak demand for its exports, has been struggling in 2024 and is on course to contract for a second straight year.

Adding to the challenges are heightened political uncertainty as the country heads for new elections in February following the collapse of the government, and the threat of new US tariffs under US President-elect Donald Trump.

But the DAX has nevertheless surged ahead,........

© International Business Times