The German DAX index opened Tuesday’s trading session with modest gains. By 9:30 AM local time, the benchmark index was calculated at approximately 24,100 points, a 0.1 percent increase from the previous day’s closing level. Leading the upward trend were shares in Commerzbank, Rheinmetall and Daimler Truck, while FMC, Porsche and Zalando showed the largest declines.
Market analyst Jochen Stanzl, Chief Market Analyst at CMC Markets, attributed the DAX’s performance to recent developments, noting a pattern of market reaction to comments from Donald Trump. He suggested investors appeared keen to test last week’s peak, adding that the trajectory will be heavily influenced by the ongoing volatility in trade policy. Despite an extension of the pause on reciprocal tariffs, the issue remains a source of uncertainty for the equity market. He cautioned that a sustainable rally is unlikely without a trade agreement with the United States.
Stanzl highlighted conflicting signals for the European Union, characterizing the extension of the tariff pause as a positive development. He indicated that Trump’s strategy involves issuing threats before demonstrating willingness to negotiate, suggesting the potential implementation of reciprocal tariffs would likely hinder ongoing trade discussions. However, he also pointed out the continued presence of sectoral tariffs on automobiles, auto parts, aluminum and steel until August 1st remains a concern. The EU has, to date, been unable to significantly alter the existing, high levels of tariffs during the negotiations.
The European currency strengthened Tuesday morning; the euro reached $1.1756, with the dollar trading at €0.8506.
Meanwhile, oil prices declined; a barrel of Brent North Sea crude was priced at $69.35 at approximately 9:00 AM local time, representing a decrease of 23 cents or 0.3 percent compared to the previous trading day’s closing.