30 AM.. This represents a gain of 0.3 percent compared to Thursday’s closing level.
“The market’s rapid approach to its all-time high rewards those bargain hunters who entered the market below 24,000 points” commented Jochen Stanzl, Chief Market Analyst at CMC Markets. He attributed the positive sentiment to a general lack of conviction surrounding potential trade tensions. “Investors are not fully accepting the possibility of Donald Trump imposing a 30 percent tariff on imports from the European Union, a move that would likely trigger further instability in global financial markets. The prevailing view is that a mutually agreeable resolution will be reached.
The performance of the Wall Street market is providing crucial support for the DAX, enabling it to sustain its upward trend. An unusual effect of Trump’s recent pressure on Jerome Powell has, paradoxically, increased the probability of a Federal Reserve interest rate reduction in September to just above 50 percent. However, recent retail data and other economic indicators continue to suggest a generally robust economy, affording the Fed more leeway to maintain current rates. Speculation concerning potential monetary easing in September therefore remains a precarious position for market participants.
Investor activity is also being driven by increased regulatory clarity within the United States, prompting a surge into digital currencies. During the recently concluded “Crypto Week” Congress achieved a significant victory for the industry with the passage of legislation regulating stablecoins into federal law. While some legislators deem the current regulation insufficient, further bills are expected, likely contributing to increased acceptance of digital currencies. This development has been met with a fresh record high for Bitcoin and an impressive gain of almost 50 percent for Ethereum over the past month.
The Euro strengthened Friday morning, trading at $1.1623, with the US Dollar fetching €0.8604.