Dax has recovered slightly by midday after a poor start. By 12:35 pm, the index was calculated at around 21,445 points, a 0.1% increase from the previous trading day. Infineon, Brenntag and Porsche led the list of stocks, while Mercedes-Benz, Deutsche Bank and Merck lagged behind.
The dominant theme remains the US customs policy of President Donald Trump. “Market participants seem not to fully believe the hype yet” said market expert Andreas Lipkow. Many investors expected the US administration to shift its focus on EU trade issues, following the agreements with Canada and Mexico.
“For the European economy, a similar approach by the US would mean deep cuts” Lipkow said. Market participants are also divided, as Infineon’s data were better than expected but did not have a significant impact on the overall market. The quarterly reports from Mitsubishi, however, had a much greater impact. The automotive industry continues to play a significant role in Europe.
The European common currency was slightly weaker at midday, with one euro costing 1.0324 US dollars and one dollar being worth 0.9686 euros.
Meanwhile, the oil price fell significantly: a barrel of North Sea Brent crude cost around 75.09 US dollars at 12 pm German time, a decrease of 87 cents or 1.2% from the previous trading day’s close.