Can the DAX Continue to Rise?
After the market kicked off the trading week with a promising start on Monday, Tuesday also initially looked like it would be another positive day. By the end of the trading session, the DAX was again up by 1.4 percent, but the mood has slightly dimmed due to developments on the American stock exchanges. The U.S. President continues to take a hard stance toward China, despite China having imposed an export ban on certain rare earth elements. This export ban also affects the U.S. and could cause problems in the development of military technology. China is using its quasi-monopoly in this area to demonstrate the limits of U.S. tariff policy. The situation remains tense, raising the question of whether stock markets can continue to climb.
The DAX is currently facing the challenge of reclaiming the 21,300-point mark, driven particularly by the shares of Heidelberg Materials (+4.2%), Rheinmetall (+3.7%), and Vonovia (+3.7%). Vonovia appears to be making a turnaround. The stock has gained more than 7 percent in the past month, and a recommendation from JP Morgan comes at just the right time. The next technical resistance is expected around 30 euros.
British Stock Market Gains – Glencore in the Red
The British stock market is also following the general correction trend and posted a gain of 1.2 percent in yesterday’s trading session. The strongest performers in the index were the shares of 3i Group, up 5.9 percent, and St. James’s Place, up 4.2 percent, while Lloyds Banking Group and Glencore recorded the highest trading volumes. Glencore ended up second to last in the performance rankings with a loss of 1.5 percent. The UK market is also being influenced by U.S. tariff developments.
ECB Eyes Further Rate Cut
The euro seems to benefit from the ongoing back-and-forth surrounding tariffs. Demand for the common currency is currently high, as confidence in the U.S. dollar is declining. The upward trend of the euro against the U.S. dollar appears stable, although a slight correction did occur on Tuesday. It remains to be seen whether the euro can reclaim the 1.13 USD mark today. On a monthly basis, the euro has so far gained 3.7 percent. It will be interesting to see how the ECB positions itself regarding the tariff situation. Another key interest rate cut is expected—from 2.65 to 2.4 percent.
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