The Dax index started the trading day on Wednesday morning with losses, standing at around 21,430 points by 9:30 am, a 0.4% drop from the previous day’s close. The leading banks, Commerzbank, Deutsche Bank and Vonovia, led the index, while Continental, Zalando and Daimler Truck trailed behind.
“While the US trade dispute with its two neighboring countries is on hold for the time being, the conflict between the US and China is on the verge of escalating” said Thomas Altmann of QC Partners. “This could quickly turn into a trade war 2.0. And if the two largest economies are to engage in such a fierce duel, it could have negative effects on the global economy as a whole” the analyst fears.
The European common currency, the euro, was stronger in the morning: one euro was worth 1.0406 US dollars and one dollar was equivalent to 0.9610 euros.
Meanwhile, the oil price fell: a barrel of Brent crude from the North Sea cost around $75.99 by 9 am German time, a 21-cent or 0.3% decrease from the previous day’s close.