DAX Climbs Higher – New Tariffs in Effect: Is an Inflation Shock Looming?
The DAX recently climbed slightly, ending the trading day on a positive note. The leading index closed at 23,924.36 points, a gain of 0.33 percent. However, investors are divided on the index's direction. The long months of tariff negotiations have now ended, and new tariffs are in effect. In the coming weeks, global inflation reports will likely come into focus, as higher tariffs automatically mean a rise in prices. Ultimately, the increased costs will be passed directly to consumers. The US President has this on his agenda and has been trying to influence the Federal Reserve for months, but the Fed remains calm and committed to making data-driven decisions. Consequently, these issues could dominate equity markets in the near future, potentially leading to a temporary economic cooldown. The statistically weak month of August could play a key role in this development.
Beiersdorf Plummets – Vonovia Strong: Winners and Losers!
Among individual stocks, Vonovia was unfazed by the turmoil, securing the day's victory with a 3.5 percent price increase. It was followed closely by Deutsche Bank, which rose 2.6 percent, and Porsche, which took third place with a 2.0 percent gain.
Bad news, however, came from Beiersdorf. The company had to lower its sales forecast for Nivea products, disappointing investors. The typically defensive stock suffered a sharp loss of almost 9 percent, exacerbating its downward trend.
The 24,000-Point Mark: A Key Test for the DAX?
Market movements in the DAX remain hesitant. The 24,000-point mark is becoming a critical threshold where technical resistances could slow further increases. Bears may be lying in wait for an opportunity to trigger another sell-off. However, if the index manages to overcome and hold this level, the bulls could regain control.
What's next: Will the DAX fall below 24,000 points, or will it break out to the upside?
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.