The DAX opened the week in the red. At the close of Xetra trading the index traded at 24,991 points, down 1.1 % from the previous day.
“As though the customs drama of the past months had not already created enough chaos in global trade, the Supreme Court ruling in the United States, Trump’s supposed defeat and his subsequent backlash have now made the turmoil perfect” said Andreas Lipkow, chief market analyst at CMC Market. “No one really knows which tariffs will still be in force, for how long, or whether any refunds can be expected – the prevailing uncertainty alone breeds nervousness and sells in the equity market. The Frankfurt exchange has seen the early‑morning frenzy ease somewhat during the session. Yet before the DAX can approach a new all‑time high, it must once again fight to reach the 25,000‑point mark”.
The Ifo index has shown that the German economy has yet to gain real momentum, although prospects are slightly brighter. The economic “seed” in Germany is still young and fragile. A possible massive rise in oil prices due to a military escalation in the Middle East between the United States and Iran, or new tariff conflicts, would likely impose strong negative impacts on this modest upside. There is also no clarity on how the trade agreement between the United States and the European Union will proceed. In the coming weeks it will become clear how much the economic recovery will be hampered by further protectionist measures.
Today’s trading floor was also characterized by caution because the week still holds several catalysts. Alongside quarterly results from Nvidia and Salesforce, several DAX constituents are scheduled for earnings releases. Investors should also brace for additional statements from the U.S. president on the tariff issue, likely aimed at restoring the original situation. Even if inflationary pressures are contained, trade‑policy disputes will inevitably weigh on the operating results of many firms.
On the corporate front, Novo Nordisk’s shares suffered a swing. The Danish drugmaker failed to convince investors of the efficacy of its combination product, further disappointing expectations. The falling trend in the stock accelerated, slipping 15 % today. Investors, in turn, turned increasingly to precious metals and crude oil. The flight to safe havens continued, pulling Bitcoin’s price below the $65,000 mark, Lipkow noted.
The euro edged up in the afternoon, trading at $1.1799, while the dollar was worth €0.8475.
Gold posted a strong rally; a fine ounce fetched $5,211 at the close, up by 2 %. That translated to €142.00 per gram.
Oil rose during the same period: a barrel of North Sea Brent traded around $72.31 at 5 p.m. German time, up 55 cents or 0.8 % from the previous day’s close.
