The Dax started the trading day on Tuesday with a restrained pace. By 9:30 am, the leading index was calculated at around 21,925 points, 0.1 percent above the previous day’s closing level.
“The Dax is currently the star of the stock market this year” said Thomas Altmann of QC Partners. “When looking at the closing prices, the Dax marked its 13th all-time high this year yesterday. For comparison, there were 15 record highs in the entire second half of 2024.”
“Meanwhile, the valuation is rising further. The price-to-earnings ratio is as high as it was in 2021 and more than two points above the 10-year average. The price-to-book ratio now lies 15 percent above the 10-year midpoint.”
Tariffs on steel and aluminum are coming. “After the stock markets waited yesterday, one can now ask if these tariffs have already been priced in.” The stock markets are currently painting a very optimistic picture of a booming economy with a simultaneously declining inflation rate. In connection with the high valuations, the situation on the stock exchanges is currently not risk-free.
“Thus far, it is only individual markets that have been abandoned by investors. This applies, for example, to Indonesia. Today, the Jakarta Stock Price Index reached a three-year low. The United States is the second most important export market for Indonesia’s products and steel is one of the most important export goods” said Altmann.
The European common currency was barely changed on Tuesday morning: one euro cost 1.0307 US dollars and one dollar was accordingly worth 0.9702 euros.