The Dax has reversed its recent downward trajectory, climbing back above the psychologically significant 25,000-point threshold.

The German benchmark index traded at 25,039 points, marking a 0.6% gain in the session.

The index had previously established new all-time highs earlier in the week, surpassing 25,900 points on Monday and closing above 25,800 on Friday.

This recovery follows two consecutive days of losses that had pushed the index below the round number.

The rebound suggests that selling pressure has eased among European equities.

Investors appear to be regaining confidence in the German market's underlying strength, despite the short-term pullback.

The index had previously established new all-time highs earlier in the week, surpassing 25,900 points on Monday and closing above 25,800 on Friday.