While on Wednesday it seemed that the catalysts of the ceasefire and the faster declining inflation in the U.S. would put the DAX back in the fast lane, investors were taught otherwise on Thursday. Uncertainty noticeably increased again, as the Russian leadership (still) did not agree to the proposed 30-day ceasefire as hoped. Too many questions remain unanswered, according to sources from Russian circles.
As a result, the DAX is now trapped in a narrow range, which was defined last Tuesday within a point span between 22,835 and 22,237. Both scenarios remain possible: the German stock index could continue to decline further, or the trading range could be broken to the upside. The situation is becoming particularly exciting as Donald Trump is targeting tariffs of up to 200% on champagne and other alcoholic beverages from Europe. The situation appears to be escalating, and investors are warned and staying cautious.
The stocks of RWE, Heidelberg Materials, and Rheinmetall formed the top trio on the DAX list on Thursday, while Daimler Truck, Fresenius, and Brenntag ended up at the bottom of the list.
British Stock Index Under Pressure – Pound Remains Strong
The British stock index remains under pressure, as it once again failed to impress on Thursday and recorded another negative trading day. Although the sell-off, with a decline of 0.3%, was not particularly significant, investors increasingly get the impression that the current stabilization is merely a pause before another downturn.
Of course, geopolitical developments in the Ukraine conflict, as well as U.S. tariffs, play a key role in daily assessments of the economic situation in the UK.
Similar to gold, which is on a record chase, investors in the British pound are in high spirits. Although the British currency barely gained on Thursday, it remains stable at a high level and seems ready to challenge the 1.30 USD mark sustainably.
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