The Past Week in Financial Markets
The past week in the financial markets was characterized by a mix of recovery tendencies and ongoing uncertainty. The German stock market was particularly in focus, as the DAX continued its losing streak, closing on Friday down 0.74 percent at 23,771 points. This further distanced the leading index from its record high of 24,479 points that had been reached just a week prior.
Market Developments
- DAX Under Pressure: The DAX recorded five consecutive trading days of losses. Despite positive news regarding US inflation and the trade dispute between the US and China, investors remained cautious.
- US-China Trade Agreement: The agreement on a framework for a trade deal was perceived as too vague and did not generate enthusiasm.
- Lack of Momentum: Due to the largely completed earnings season and few monetary policy signals from the Fed and ECB, a sluggish market environment prevailed.
- Valuations Ambitious: The mood was neither euphoric nor panicky, but rather directionless – typical for early summer weeks.
Corporate News
This week featured several important corporate events. Fraport published traffic figures for May 2025, and DWS and Aumann held their annual general meetings. Next week, Q2 figures from Hennes & Mauritz and annual meetings from Centrotec and Hamborner Reit are scheduled.
Macroeconomic Indicators
Focus remains on economic data such as the GfK consumer confidence for July in Germany and the Swedish trade balance. In the US, important indicators such as Q1/25 GDP and the Chicago Fed National Activity Index will be published.
Interest Rate Policy as a Central Theme
Monetary policy remains a critical factor: investors should closely monitor the signals from the European Central Bank (ECB), as they can have direct impacts on investment strategies.
Conclusion
The markets are currently in a phase of consolidation. Trade agreements, a lack of impetus from corporate reports, and a cautious monetary policy mean that many investors are waiting on the sidelines. In the short term, no major price fluctuations are expected, although volatility remains elevated.