The Dax index, after a brief downturn, recovered by midday to its previous day’s closing level. By 12:30 pm, the leading index was calculated at around 22,780 points, 0.1% above the previous day’s close.
The unexpected surge in ZEW economic expectations may have contributed to the index’s recovery.
“Market participants seem to be getting cold feet ahead of the US market’s opening” said market analyst Andreas Lipkow. “Now, even the optimistically inclined market participants are pulling back from Dax stocks, making the sidelines more lively.”
It is currently difficult to predict the future of US foreign policy, which is not only affecting the country’s domestic politics but also extending to other areas. “This opens up many surprise moments with uncertain outcomes for market participants, as the direct consequences for the affected economies are often far-reaching.”
In such an environment, nervousness and volatility are on the rise in both stock market indices. “Macroeconomic data are taking a backseat in this situation and are often only noted in passing” Lipkow said.
The European common currency was slightly weaker on the day, with one euro costing 1.0464 US dollars and one dollar being worth 0.9557 euros.