DAX Starts the Week with Modest Gains
U.S. stock markets saw a slight recovery on Tuesday, which immediately had a positive effect on the DAX. On Tuesday, the German benchmark index closed up 0.4%, finishing at 21,293 points. However, investors and market participants still seem hesitant to fully trust the European stock markets — and the reason is clear: the unpredictability of U.S. President Donald Trump.
Just as tensions over tariffs began to ease, the current U.S. President opened a new front — a power struggle with the Federal Reserve, which is supposed to operate independently. Trump is reportedly looking for ways to remove current Fed Chair Jerome Powell, potentially replacing him with a loyal supporter. The real challenge will be explaining this move to the American public, especially since the Fed, under Powell’s leadership, has so far performed well in guiding the markets through elevated inflation.
DAX Showing Potential, But No Clear Direction Yet
Back in Europe — and specifically Germany — the question remains: where is the DAX headed next? The recent price movement has been encouraging, but it’s still unclear who is currently investing in the DAX or planning to do so. Yesterday’s high is definitely a key level to watch. If it’s surpassed, it could trigger a chain reaction of buying that might drive the index even higher.
The same dynamics can be observed in the currency markets, particularly in the euro vs. U.S. dollar pair, which remains one of the most actively traded currency pairs.
Always keep in mind: real success often comes after most have already moved on from the latest trend.
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