The European stock markets continue to lie in wait. There are no signs of weakness, but the right move upwards is also not recognizable. The EuroStoxx closed yesterday's trading day with a small gain of 0.12 percent. There is also some lull in the DAX, which appeared only slightly stronger yesterday with a plus of 0.19 percent. Finally, the British FTSE 100 was also not convincing with a slight minus of 0.1 percent on yesterday's trading day.
Trade tariffs slow down stock markets
In Europe, it is still the issues around trade tariffs that the American government could still impose directly. In any case, Donald Trump's policy seems to be working, because Trump's demands have also moved in Canada. The Canadian government is fulfilling initial US demands to take stronger action against the amphetamine trade, which is a key US demand. This, in turn, could strengthen the US government in its approach and take exactly the same path towards Europe. Although it is emphasized that plans against tax increases are in the drawer, what are the plans worth if the US government is serious? Thus, the wait-and-see attitude on the stock markets is quite understandable, because volatility could suddenly increase southwards when it is announced. This means caution is advised.
US dollar continues to exert pressure on euro
The euro remains under pressure against the US dollar. Jerome Powell's announcement that the Federal Reserve sees no need to hurry up with further interest rate cuts is maintaining the dollar's strength. The danger of a resurgence of inflation is still present, not least because of the new trading facility with high import duties. In any case, inflation data from the USA tomorrow afternoon is eagerly awaited. The euro is currently trading at 1.35 US dollars, although it is not yet clear whether the bottom has already been found here.
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