The German Dax index started the trading day on Tuesday, hovering near its closing level from the previous day. By 9:30 am, the index was calculated at around 20,981 points, with a slight dip in the minus. Siemens Healthineers’ shares led the pack, while RWE’s shares trailed at the end of the list.
According to Jochen Stanzl, chief market analyst at CMC Markets, the Dax’s brief ascent above the 21,000-point mark on Monday, fueled by the expectation that the new US president would not immediately impose trade tariffs on Europe and Germany, has not altered the index’s upward trend. However, the analyst expects the market to be characterized by a lack of direction in the near term.
Stanzl predicts that the high volume of executive decrees issued by the new US president will continue, and many investors will remain cautious, waiting to see how the situation unfolds. He notes that the EU and Germany may be spared from trade tariffs for the time being, but this reprieve should not be taken as a long-term guarantee. The analyst believes that the US president will eventually turn his attention to Germany and the EU.
The euro, the common European currency, was weaker on Tuesday, with one euro equivalent to 1.0366 US dollars, and one US dollar worth 0.9647 euros. Meanwhile, the price of Brent crude oil fell, with a barrel of the North Sea variety trading at 79.89 US dollars at 9 am CET, a 0.3% decline from the previous day’s close.