The Dax started the trading day on Thursday morning on a friendly note. By 9:30 am, the leading index was calculated at around 21,710 points, 0.6 percent above the previous day’s close.
Siemens Healthineers led the stock list, with the medical technology company performing better than expected despite weaker demand from China.
“Markets are now focused on the US labor market data due to be released tomorrow, as it will significantly influence the likelihood of further interest rate cuts by the US Federal Reserve this year” said Jochen Stanzl, chief market analyst at CMC Markets. Current expectations are for two more steps in June and October. “In the market, the inflationary effects of Trump’s tariffs are being underestimated, a circumstance that aligns with the new finance minister’s demands for lower returns.”
“In the past one and a half weeks, sheer volatility has dominated the financial markets, leading to a surge in the gold price before investors increasingly fled to safe US government bonds, causing yields to fall. Trump will stoke confusion and fear to achieve his negotiation goals and as long as the markets don’t collapse, he is willing to accept the impact on investors, at least until the point of a significant market downturn.”
“It seems that point has been reached this week. Otherwise, the sudden shift in tariffs against Mexico and Canada would be hard to justify.” Not only other countries, but also ordinary investors, felt the pressure of the White House’s threats. Buying stocks now feels almost like making a political statement – ‘one that refuses to be intimidated by the threats, a concerning development,’ said Stanzl.
The European common currency was weaker on Thursday morning, with one euro costing 1.0374 US dollars and one dollar being worth 0.9639 euros.
The gold price showed weakness, with one troy ounce being sold for $2,856 (-0.4 percent) in the morning, equivalent to 88.51 euros per gram.