30 am.. This represents a gain of 0.3 percent compared to Thursday’s closing level.
“The market’s proximity to its all-time high rewards the value investors who entered the market below 24,000 points” stated Jochen Stanzl, Chief Market Analyst at CMC Markets. He suggested that investor sentiment remains skeptical regarding potential tariffs of 30 percent on imports from the European Union proposed by Donald Trump and the resulting disruption to global financial markets. The prevailing market consensus seems to favour a negotiated resolution.
Support for the DAX’s upward trajectory is being provided by positive performance on the Wall Street markets. While Trump’s recent pressure on Jerome Powell has surprisingly increased the perceived likelihood of a Federal Reserve interest rate cut in September to above 50 percent, recent economic indicators still suggest a fundamentally robust economy affording the Fed more flexibility. Consequently, speculation regarding a monetary policy easing remains a delicate proposition.
Furthermore, investors are increasingly gravitating toward digital currencies amid expanding regulatory oversight in the United States. During the government-designated “Crypto Week” Congress achieved a significant victory for the sector, with regulation of stablecoins now enshrined in federal law. While some lawmakers believe the regulation doesn’t go far enough, further legislation is anticipated, which is likely to boost acceptance of digital currencies. This development is being rewarded by investors, resulting in a new record high for Bitcoin and a near 50 percent increase in Ethereum’s value over the past month.
The European single currency strengthened on Friday morning, trading at $1.1623, with the US dollar fetching €0.8604.
