The past trading week turned out to be extremely successful for investors. Only on Friday did the index run out of steam a little and at the end of the trading session there was a small minus. The minus in the index was only 0.08 percent, resulting in a closing price of 21,394 points. Somewhat more worrying is the fact that it went down a little further in after-hours trading and the pre-market is expected to open a little lower today, Monday.
Aggressive U.S. trade policy linked to U.S. migration policy
The U.S. markets also fell significantly in after-hours trading and seem to be opening negatively today. It is possible that they are the exclamation marks of the new US trade policy, which the Trump administration is linking directly to US migration policy. After the Colombian president refused to land two U.S. military planes with illegal immigrants on board yesterday, Trump immediately reacted with the measures of a 25% tariff on all imported Colombian products into the U.S. and further ordered the closure of the Colombian visa office. The dispute was quickly resolved after the threats by the Colombian government giving in, but it clearly shows the course of action of the USA. Anyone who does not play 100% according to the US rules will be severely punished. The fact that this undoubtedly has consequences for the US economy seems to leave Trump completely cold, and the markets could react turbulently to such aggressive approaches. Europe has been warned and should study this example carefully in order to be prepared for such negotiations, if they can be called that at all.
Severe losses at MTU - Change in the Board of Management
Among the individual stocks, the share of the trading company Zalando played first fiddle in the DAX on Friday, ahead of the shares of BASF and the Porsche preferred shares. Zalando rose by 2.9 percent, BASF shares rose by 2.8 percent, followed by Porsche shares with a gain of 2.7 percent. The biggest loser, by far, was the share of MTU Aero Engines with a minus of 6.5 percent. The strong share ran into turbulence due to changes in the management board. At first glance, this seems confusing, but changes in management are always associated with a certain amount of uncertainty, which the market is pricing in sensitively at this point, especially since analysts from different companies at MTU are very divided on price targets.
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