The Dax started the trading day on Tuesday in a friendly mood. At around 9:30 am, the leading index was calculated at around 22,380 points, which was 0.5 percent above the previous day’s close. At the top of the list were Rheinmetall, MTU and Deutsche Bank, while Porsche, Deutsche Börse and Henkel were at the bottom.
“Every inch that US President Trump wants to recede in the trade conflict is losing its fear for investors on the stock market” said Jochen Stanzl, chief market analyst at CMC Markets. “Now it’s the auto tariffs that could become a problem for US manufacturers and should therefore be recalled before their introduction over the weekend.” The stock market seems to take this development positively and the Dax is expected to defend and possibly expand its gains from last week. “This may also depend on four of the ‘Noble Seven’ – Microsoft, Apple, Meta and Amazon -” said Stanzl. “Their quarterly earnings today and tomorrow after the close of trading on Wall Street could determine whether the markets can further shake off their recession fears.” The Dax currently prices in a mild scenario at 22,300 points. Investors are confident that the US central bank, the Fed, will support the market or that Trump will cut tariffs against China if necessary. “A halving of tariffs against China is still on the table.”
Meanwhile, the European community currency was slightly weaker on Tuesday morning: One euro cost 1.1400 US dollars and one dollar was therefore worth 0.8772 euros. The oil price also fell significantly: At around 9 am German time, a barrel of North Sea crude oil cost 65.17 US dollars, which was 69 cents or 1.1 percent less than the previous day’s close.