European markets opened with modest gains Tuesday morning, though trading remained sensitive to ongoing political developments in the United States. The DAX, Germany’s leading stock index, was trading around 24,050 points as of 9:30 AM local time, representing a gain of approximately 0.9 percent from the previous day’s closing level.
Qiagen, Deutsche Telekom and Eon led the gainers, while Commerzbank, Deutsche Bank and Airbus lagged behind.
Market attention was largely focused on escalating tensions between former US President Donald Trump and the Federal Reserve. Trump recently announced his intention to seek the removal of Federal Reserve Governor Lisa Cook, citing alleged inaccuracies in a past mortgage application. The dispute centers on interest rate policy, with Trump advocating for reductions, while the central bank has maintained a cautious approach.
“Investors are closely monitoring the situation surrounding the Federal Reserve” noted Thomas Altmann of QC Partners. “The proceedings involving Governor Cook have the potential to introduce new uncertainty into the market. The concern extends beyond the veracity of the accusations themselves, but rather centers on Trump’s ability to influence the Fed’s direction through new appointments and potentially steer it towards lower interest rates.
In currency markets, the Euro saw a slight weakening, trading at 1.1617 US dollars, while the dollar was valued at 0.8608 Euros.
Meanwhile, oil prices experienced a slight decline. Brent crude, the benchmark North Sea variety, was trading at 68.32 US dollars per barrel around 9:00 AM German time, a decrease of 48 cents, or 0.7 percent, from the previous session’s closing price.
