After a strong performance in May, the German stock index DAX gave up slight ground at the start of June. Initially, new tariff threats from U.S. President Donald Trump on steel imports caused uncertainty in the market. Investors, however, have become somewhat accustomed to recurring trade conflicts. The index's loss, which briefly approached one percent, narrowed to 0.28 percent by the close of trading. The DAX thus ended the session at 23,930.67 points.
Trump plans to raise duties on steel imports to 50 percent of the goods' value. Adding to the pressure were disappointing economic data from the United States, which provided no support for equity prices.
Statistically, the DAX faces a challenging month ahead. June is historically regarded as the weakest month of the year for stock markets, and with the "Trump factor" continuing into this and future years, there seems to be ample reason for profit-taking. In any case, buying interest appears to be waning.
Siemens Energy continues its success story – Zalando struggles
While Zalando led the DAX once again at the start of the week with a gain of 2.8 percent, Rheinmetall’s stock — previously a top performer — fell to the bottom of the index with a decline of 3.5 percent. It was almost a reversal of roles: Zalando remains under pressure and has failed repeatedly to break out of its trading range, while Rheinmetall’s share price — typically associated with defense stocks — showed a strong upward trend, similar to Siemens Energy, which closed in third place yesterday with a gain of 1.94 percent.
Can positive inflation news provide fresh momentum to DAX?
U.S. markets helped lift the DAX slightly in after-hours trading, but the pattern still does not appear stable. On this Tuesday, the DAX will likely attempt to reclaim the 24,000-point mark. A potential catalyst could come from the release of European inflation figures at 11:00 CET, which may offer new impetus depending on the outcome.
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