As the Frankfurt Stock Exchange opened on Friday morning, the Dax index began the trading day with a negative start, standing at around 24,235 points, a 0.4% decrease from the previous day’s close.
Market analysts are questioning the impact of the US tariffs on the economy, with many wondering where the recession is, as predicted by the tariffs. “Today, we might get an answer to this question” said Jochen Stanzl, Chief Market Analyst at CMC Markets, in reference to the upcoming US jobless rate announcement.
Despite the concerns, the Dax is expected to reach a new record high this week, a development that Stanzl believes is premature for those who are already anticipating a negative outcome of the tariffs. “The data can change suddenly and the pessimistic expectations of cautious investors may be confirmed” he added.
On Wall Street, investor confidence has returned, with many celebrating the Trump administration’s policies through internet memes like “Taco.” The mood is similar to what it was before the tariff issues began. However, Stanzl cautions that the official labor market data, due to be released later in the day, may not confirm the private ADP forecast from Wednesday and a significantly low number of new job creations could lead to a surge in short-term volatility and a decline in stock prices.
Meanwhile, the euro was slightly weaker against the US dollar, trading at 1.1423, while one US dollar was worth 0.8754 euros.