Impact of Trump’s Announcements on Stock Markets
Recent developments in the stock markets, particularly the announcement of a “major trade deal” by U.S. President Donald Trump, have led to a rally driving the DAX upwards before the opening. This momentum is highly relevant for private investors, especially regarding the upcoming Fed interest rate decisions.
Trump’s Trade Policy and Its Effects
- Tariffs and Trade Deals: Trump recently announced a 90-day pause on new tariffs, which has calmed the markets. However, he also emphasized that an extension of this pause is unlikely. This uncertainty significantly influences the markets.
- China and the U.S.: Trade relations between the U.S. and China remain tense. While Trump has imposed tariffs of 145% on Chinese goods, China, in turn, has raised tariffs on U.S. products to 125%. A trade deal could reduce these tensions and stabilize the markets.
Effects on Stock Markets
- DAX and European Markets: The announcement of a possible trade deal has led to a recovery rally in European markets. The DAX benefits from this development, although market participants warn that the markets may have risen too far.
- U.S. Stock Markets: U.S. stock exchanges have stabilized after a turbulent week, as investors hope for positive signals from trade. However, uncertainty regarding Trump’s tariff policy remains a risk factor.
Fed Interest Rate Decisions
The Federal Reserve faces the challenge of keeping interest rates stable until there is clarity on the economic outlook. Traders expect the Fed to maintain rates in a range of 4.25% to 4.50%. The Fed’s monetary policy orientation will be an important trigger for the future development of the U.S. dollar and global markets.
Relevance for Private Investors
Private investors should closely monitor developments in trade and the monetary policy decisions of the Fed. The uncertainty in trade relations and interest rate decisions can have significant impacts on the markets. A clear strategy that reacts to these factors is crucial for success in the current market environment.