The DAX index maintained a positive trajectory on Tuesday, building on an encouraging start to the trading day and remaining in the green throughout the morning. As of approximately 12:30 PM, the index was calculated at around 24,205 points, representing a gain of 0.2 percent compared to the previous trading day. Sartorius, Brenntag and Zalando led the performance, while Commerzbank, Rheinmetall and Siemens Energy concluded at the lower end of the rankings.
Mid-term economic expectations, as compiled by the Centre for European Economic Research (ZEW), continued their upward trend in July. Thomas Gitzel, Chief Economist at the VP Bank Group, noted, “Financial market analysts surveyed by the ZEW remain optimistic”. He cautioned, however, that recent tariff escalations were likely only partially reflected in the survey.
The prevailing economic confidence appears largely underpinned by the German government’s planned infrastructure investments and the European Central Bank’s (ECB) interest rate cuts, which are anticipated to foster more favorable financing conditions. Moreover, hopes remain high for a resolution to the ongoing trade dispute with the United States.
Despite the positive sentiment, cautioning remarks were made. Gitzel stressed that the current degree of optimism might be excessive, referencing disappointing order intake figures for the German manufacturing sector in May. “The upward trend in new orders seen in previous months was reversed with the May data” he stated. The tariffs imposed by the US President continue to pose a significant risk to German industry. Even with a negotiated solution, existing uncertainties may already have inflicted considerable damage by dampening investment. “The higher the uncertainty, the less investment takes place.
At midday on Tuesday, the Euro gained slight traction, trading at $1.1678, making the dollar worth €0.8563.
Meanwhile, oil prices experienced a decline. Brent North Sea crude was priced at $68.96 per barrel around midday German time, down 25 cents, or 0.4 percent, compared to the end of the previous trading day.