Financial Markets Remain Cautious Amid Ongoing Trade Tensions
The German Dax index continued to trade in the red zone on Friday, with a midday reading of around 24,275 points, a 0.2 percent increase over the previous day’s close. Market analysts attribute the steady decline to a lack of urgency among investors, with some selective buying in defensive sectors and profit-taking in cyclical sectors.
The approaching weekend brings the risk of renewed tensions in the trade dispute, with verbal attacks from the US President often preceding the weekend. The increasing domestic political pressure in the US could lead to a drastic shift in the country’s foreign trade policy, potentially as a diversion from the controversy surrounding Elon Musk.
Meanwhile, the US bond market has shown signs of strain due to the high national debt. In the Eurozone, retail sales and GDP figures for the single currency area were slightly better than expected, but the stock markets have not reacted significantly to the news.
The euro was weaker against the US dollar, trading at 1.1418 by the afternoon, with the dollar available for 0.8758 euros.