The past trading week was one of the few trading weeks so far that ended negatively in the German stock index. The tough coalition negotiations between the CDU and the SPD as well as the adventurous zigzag course of the US government on tariffs leave investors in uncertainty. The result is profit-taking instead of new investments, and as a result, share prices also cause the index to fall. The coalition negotiations are continuing, but it still seems to be a long way from a government and the SPD, which has become small in the meantime, seems to have succeeded in softening the Union's program to such an extent that well-known party members are leaving the party. There are also no signs of an easing in US trade policy, so that the stock markets are likely to continue to be in turmoil, which is likely to bring volatility. In any case, the DAX is gradually on the threshold of entering a deeper correction. The shares of Symrise, Vonovia and E.ON were strong on Friday, while the securities of Commerzbank, Siemens Energy and Infineon each fell by more than 4 percent and were thus at the bottom of the DAX list.
British stock market on a zigzag course
The price development of the British FTSE 100 is also like a zigzag course. While the index staged an exhilarating rally in the first two trading months of the year until the end of February, investors did not really know what to do with the index in March. In the chart picture, a formation consisting of a higher high and a lower high is emerging, which always indicates that a trend reversal may be imminent. For the British FTSE 100, this would mean that it could go down again. Although the US is open to deals in trade policy, as the US president calls it, the advantages of the deal are more likely to be found on the US side. The support at 8,500 points is an important price area that should not be undercut in order to maintain the uptrend.
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