The Dax Index continued its upward trend on Tuesday, reaching a high of around 20,285 points by 12:30 pm, a 0.8 percent increase from the previous trading day. BASF, Siemens Healthineers, Merck, and Deutsche Bank led the gains, while Symrise’s shares lagged behind.
Market analysts attribute the positive reaction to the speculation that the planned US tariffs might be gradually and over a period of several months, rather than all at once, which would mitigate the risk of an inflation shock in the US and provide the Federal Reserve with more room for maneuver, said Andreas Lipkow, a market analyst. Even the possible solution surrounding TikTok in the US, with Elon Musk’s involvement, seems to have boosted investor confidence, as it at least brings the two parties closer together, according to Lipkow.
The euro was slightly weaker against the US dollar on Tuesday afternoon, with one euro costing 1.0258 US dollars and one dollar being worth 0.9748 euros.
Meanwhile, the oil price declined, with a barrel of Brent crude costing around 80.37 US dollars at 12 pm German time, a 64-cent or 0.8 percent decrease from the close of the previous trading day.