Stocks in the DAX index are experiencing a moderate increase, with Bayer leading the pack.
DAX Gains Slightly on Trade Optimism and Tech Stocks
The German DAX index experienced a modest increase on Tuesday, closing at 13,217.67 points, an increase of 0.18 percent. This growth was primarily influenced by optimism about a potential US-EU trade deal and a delay in US tariffs until August 1.
The deal, which might maintain a 10% baseline tariff on EU goods while exempting some sectors such as aircraft and spirits, provided relief to European exporters, supporting positive sentiment despite ongoing trade tensions. Tech stocks like Infineon and SAP contributed to the rise as well.
However, the performance of specific shares such as Bayer, Deutsche Bank, Continental, and MTU Aero Engines could not be definitively determined from the sources consulted. While Bayer and HeidelbergCement saw gains, as did Fresenius, the exact figures for their share prices on that particular day were not provided. On the other hand, Deutsche Bank and Continental had losses, and MTU Aero Engines' share price also had losses.
The European common currency traded slightly weaker in the afternoon, with one euro worth 1.1847 US dollars, a decrease of 0.17 percent. This trend continued into the close of trading.
It is important to note that the resilience of the DAX has been evident in recent days, with the index extending weekly gains close to 2 percent. However, auto and healthcare stocks have suffered recent declines due to weak earnings and inflation worries. The optimistic trade developments provided a counterbalance on Tuesday.
In the coming days, the US Federal Reserve is set to hold a meeting, which could potentially impact global markets. As always, investors are advised to closely monitor developments and adjust their portfolios accordingly.
[1] Source: Financial Times [2] Source: Reuters
- The slight rise in the German DAX index was not restricted to tech stocks alone as even other industries like finance also felt the positive sentiment, given the potential US-EU trade deal and the delay in US tariffs.
- Despite the overall growth, it's worth noting that the performance of certain finance stocks, such as Deutsche Bank and Continental, saw losses, contrasting with the general trend in the other industries.
