30 am, a 0..3 percent increase from the previous day’s close. Leading the gains were shares of BMW, Mercedes-Benz and Infineon, while Rheinmetall, Qiagen and Zalando were among the laggards.
Jochen Stanzl, head market analyst at CMC Markets, noted a shift in market sentiment driven by escalating trade rhetoric from the United States. “The tone of Trump’s trade policy is becoming more assertive and this is immediately noticeable on the Frankfurt stock exchange” he stated. The DAX has been struggling to maintain a distance from the 24,000-point mark, with optimism following a temporary ceasefire in the Middle East being overshadowed by concerns over a potential prolonged trade conflict.
The analyst highlighted the impending deadline for reciprocal tariffs on July 9th, emphasizing the intense scrutiny investors are placing on every statement from both the US President and the European Union. These pronouncements are being interpreted as potential indicators of the future trajectory of trade relations between the two major economic partners. “Currently, the expectation is that Trump will exert further pressure before ultimately seeking a deal. However, this is impossible to predict in advance, leaving investors to observe and wait” Stanzl explained.
Despite these uncertainties, Stanzl believes investors in Germany remain relatively optimistic, citing upcoming substantial government investments and the European Central Bank’s lowered key interest rates. “The trade deadline in a week is viewed as a temporary constraint on a continued upward trend” he commented. The prevailing hope is that the White House will extend the deadline, providing more time for negotiations, a move that could trigger significant gains in the stock market.
In currency markets, the euro weakened slightly on Wednesday morning, trading at $1.1782, with one dollar equating to 0.8488 euros.
Meanwhile, oil prices experienced a minor decline, with a barrel of North Sea Brent crude reaching $67.03 US dollars around 9:00 am German time, a decrease of 8 cents or 0.1 percent from the previous trading day’s close.
