One might well call it complaining at a high level to say that the DAX has run out of steam, yet the index still closes the trading day at a record high. It's true that the momentum isn't particularly strong, but it's still worth noting that the German stock index is experiencing a positive underlying sentiment among investors.
On Tuesday, the index closed with a gain of 0.31% at 23,638 points.
The dominant themes continue to be the negotiations or deals surrounding tariffs. After agreements were reached between the USA and Great Britain and China, Europe must seriously ask itself how seriously it is even being taken. It is quite astonishing that all the tariff deals around the globe were concluded before the EU's turn came.
Among the individual stocks, Volkswagen, Adidas, and BMW shone on Tuesday. Investors are likely pricing in the falling tariffs from the USA and China. Not only do automobile manufacturers benefit from this, but also sporting goods manufacturers.
Tariff Dispute Shows Dependence on China More Clearly Than Ever
It is both astonishing and frightening how heavily industrial goods depend on China. Despite all the polarization that Donald Trump triggers, the US President's fundamental idea of increasing domestic production is a desirable goal. Possibly also a goal for the European Union to undertake something in this direction so that the opportunities in Europe are better utilized.
For today, Wednesday, the DAX is initially expected to be slightly lower. After the rally, it is quite conceivable that a down day will occur, but the general sentiment is positive, and a trend reversal is not currently being considered. Accordingly, further records are to be expected.
Can the Euro Seize the Counter-Attack?
Looking at the euro, it can be seen that the euro is not easily giving up its strong position. After the Federal Reserve's decision, the euro initially weakened somewhat, but yesterday, Tuesday, it launched a counter-attack. It remains to be seen whether the euro can continue its journey north.
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