The DAX index commenced trading on Wednesday with minor losses. By 9:30 AM local time, the benchmark index was recorded at approximately 24,020 points, representing a 0.2 percent decrease from the previous day’s closing level.
Commerzbank, Rheinmetall and Munich Re were among the top performers on the day, while Volkswagen, Siemens Energy and Infineon experienced declines.
According to Jochen Stanzl, Chief Market Analyst at CMC Markets, the recent focus on inflation resulting from tariffs in the United States is impacting market sentiment. “The DAX is struggling to maintain its gains. Seasonally and technically, the index is currently under pressure, especially given the uncertainty surrounding the ongoing trade negotiations with the United States”. He added that the index is also lacking the monetary policy stimulus previously anticipated from the US.
The possibility of a US Federal Reserve interest rate cut in September is now in question, Stanzl stated. While two more inflation reports will be released before the next Fed meeting, the effects of tariffs on inflation are likely to become more pronounced in those reports.
The probability of a further deterioration in the inflation situation in the United States before any potential improvement has increased. What was previously seen as a likely rate cut in September is now balanced between a potential pause and a loosening of monetary policy.
The Euro strengthened slightly against the US Dollar, trading at $1.1624 – with one US Dollar costing €0.8603.
Crude oil prices also saw a slight increase, with a barrel of Brent North Sea crude oil costing $68.83 at approximately 9:00 AM local time – a 12-cent or 0.2 percent rise from the previous day’s closing price.
