30 a.m., a 0.2% increase from the previous day’s close. Rheinmetall, Siemens Energy and the Deutsche Börse led the index, while Eon, RWE and Heidelberg Materials lagged behind.
According to Jochen Stanzl, chief market analyst at CMC Markets, the Dax is likely to continue trading in a narrow range around the 24,000 mark, pending new market-moving events. “There are no new impulses, given the US holiday yesterday, so investors can’t gain any new insights into the German stock market” Stanzl said.
However, the upward trend remains intact and a continuation of the rally towards the all-time high above 24,000 points is technically more likely, Stanzl added. “A sudden escalation in the US trade tensions could, however, lead to increased volatility and a new downturn at any time.”
Stanzl also noted that the repeated threats of tariffs on the European Union and other countries have not only put the US dollar under pressure but also boosted the Bitcoin price. “The repeated threats of tariffs on the European Union and other countries have not only put the US dollar under pressure but also boosted the Bitcoin price, as investors seek refuge in perceived safe havens, currently mainly away from the dollar” he said.
The proposed tax cuts by US President Trump would further widen the US budget deficit and potentially negatively impact the country’s credit ratings, the market expert warned. “As a result, investors are shifting capital to the Eurozone, other traditional currencies and also to cryptocurrencies: the Bitcoin price is holding above $108,000.”
Ironically, the tariff threats have had the opposite effect of what was intended, with investors fleeing the dollar, Stanzl pointed out. The European common currency was slightly weaker on Tuesday morning, with one euro costing $1.1368 and one dollar worth $0.8797.
Meanwhile, the oil price slipped slightly, with a barrel of Brent crude selling for $64.70 at 9 a.m. German time, a 0.1% decrease from the previous day’s close.