30 am, a 0.1% gain over the previous day’s close.
According to Jochen Stanzl, chief market analyst at CMC Markets, the Dax has reached a ceiling of around 24,000 points. “The discussions between China and the US are not bringing new impulses” he said. “The prices have risen too high in the past weeks, so a simple absence of a new escalation is no longer enough to drive new surges. A framework for a trade agreement announced in the night is too vague for investors.”
Stanzl also expressed skepticism about the effectiveness of the US President’s trade policies, stating that a simple agreement for the exchange of goods and services is complex and time-consuming. “Trump has finally arrived in reality” he said. “Until then, many things can go wrong, such as a loss of the US government in the appeals court, which will issue a verdict on the legitimacy of Trump’s tariffs in the coming hours.”
The analyst emphasized the importance of the upcoming court decision, which could potentially limit the US President’s ability to impose tariffs. “The countdown is on and Trump could lose a crucial tool if the decision goes against him” he said. “Even if the tariffs are not gone immediately, it will become more complicated. The verdict can come at any time and it could mean that the reciprocal tariffs in this form will not come, or, in the worst-case scenario, Trump can continue to act as he has so far.”
The euro was slightly weaker against the US dollar on Wednesday morning, with one euro equivalent to 1.1406 US dollars and one dollar to 0.8767 euros.