Yesterday started promisingly for the DAX, which closed the trading day with a strong gain of 1.2 percent, reaching 24,073.67 points. However, the real turning point occurred after the European market closed, around 6:30 PM. The US President has initiated a new round in the trade dispute, initially focusing on Asian trade partners. Japan, South Korea, Malaysia, and Kazakhstan were informed about the planned introduction of 25 percent import duties starting August 1, 2025.
This suggests that the affected nations were unable to meet the deadline set by the US government for trade agreements. The pressing question now is: Will a similar letter be sent to the European Union? A crucial detail: The US President has granted the affected countries an extension for negotiations, shifting the implementation regulation from July 9, 2025, to August 1, 2025.
Breather or Deal Opportunity? How Markets Are Reacting to Trump's Tariff Maneuver
Markets reacted immediately with increased volatility. The DAX, for example, saw a 0.4 percent decline within minutes in after-hours trading. This loss could not be recovered, and market reactions to today's opening are eagerly anticipated. The tariff dispute will dominate the trading week, and investors will need to closely monitor news feeds, especially during the European afternoon trading session.
Among individual stocks, Heidelberg Materials stood out yesterday, posting the largest daily gain with a 2.9 percent increase. Rheinmetall followed with a 2.7 percent rise, while Siemens Energy secured third place with a 2.6 percent price increase.
Asia Sends Positive Signals: Hope for a Deal Fuels Sentiment
After US markets all closed in negative territory yesterday, the outlook from the US for this morning is initially negative. However, Asian markets started trading positively. This is due to the lingering hope that a successful agreement is still possible during the extended negotiation period. An exciting trading day lies ahead, holding potential for both buying and selling opportunities.
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