The Dax Index registered a gain of 0.36 percent on Tuesday, closing at 21,505.70 points. Analyst Konstantin Oldenburger from CMC Markets attributed the initial recovery to the market’s typical response to a Monday shock, which was followed by a rapid rebound last week, propelling the Dax by 700 points.
“It’s hard to imagine a similar scenario this time, but it’s not impossible, especially since US President Trump has reversed his stance on tariffs following phone calls with the Mexican and Canadian leaders” Oldenburger said.
A positive development for the Dax would be a similar compromise with China, which imposed retaliatory tariffs on US imports in the night. This could lead to a rally similar to the previous week, the analyst noted.
“However, before that, the big question remains whether a second wave of selling could occur. The bargain hunters have so far done everything right by buying into the dips. But whether this will continue is not just decided on the stock market, but rather on the highest political level” the expert added.
Infineon’s shares led the pack, rising by over nine percent, while those of Sartorius fell by over two percent, making it the worst performer of the day.
The European currency, the euro, strengthened, with one euro costing 1.0375 US dollars and one US dollar being equivalent to 0.9639 euros.
Gold prices rose, with one ounce of fine gold selling for 2,841 US dollars, or 88.03 euros per gram, a one percent increase.
Oil prices, meanwhile, climbed, with a barrel of Brent crude selling for 76.15 US dollars, a 19-cent or 0.3 percent increase from the previous day’s close.