Investors Remain Uncertain Amid Trade War Uncertainties and Mixed Economic Signals
The German Dax index closed at 23,949 points on Wednesday, a 0.2 percent decline from the previous day’s close. Despite the slight drop, the index continues to hover around the 24,000-point mark, with neither strong upward nor downward momentum.
Market analyst Jochen Stanzl of CMC Markets attributed the Dax’s stagnation to the ongoing trade war uncertainties, particularly the recent court ruling reinstating the US tariffs. Stanzl noted that the decision will likely lead to a return of the tariffs for countries without a satisfactory agreement with the US, citing the example of the EU.
Stanzl also pointed out the confusion surrounding US President Trump’s trade policies, citing his contradictory statements on the China deal and the tariffs. The analyst suggested that the markets may not have fully digested the implications of the court ruling and Trump’s actions.
However, the market received some support from the latest inflation data, which showed a slower-than-expected increase in prices in the US. Stanzl noted that the data reduced concerns about a US economic recession and the impact of Trump’s trade policies on inflation.
The euro and the dollar continued to fluctuate, with the euro strengthening to 1.1485 US dollars and the dollar weakening to 0.8707 euros. The Brent crude oil price, on the other hand, surged by 1.5 percent to 67.88 US dollars per barrel.