Background of the Tariff Agreement
The United States and China have agreed to lower their mutual tariffs for 90 days. This measure was seen as surprising since many experts did not anticipate such a reduction. The tariffs had severely affected trade between the two countries and had a negative impact on the global economy.
Impact on the DAX
The DAX has gained significantly in value due to this agreement, nearing the mark of 24,000 points. The index rose shortly after market opening to around 23,912 points and gained 1.2 percent to 23,790 points by noon. This development is particularly noteworthy, as the DAX has previously crossed several thousand-point thresholds, and a jump above 24,000 points would represent the fifth such milestone.
Factors Influencing the DAX
In addition to the US-China tariff agreement, there are other factors affecting the DAX. Possible negotiations between Russia and Ukraine are viewed positively, although this puts pressure on the stocks of defense companies. Losses in certain stocks, such as Rheinmetall, have also led to temporary erosion of the DAX’s gains.
Significance for Investors
For investors in the German-speaking region, the development of the DAX is of considerable importance. It directly influences their investment decisions, as the index is a vital indicator of the health of the German economy. A strong performance of the DAX can lead to increased risk appetite and make investments in stocks more attractive.
Forecasts and Challenges
Despite the positive development, there are also challenges. The DAX must consolidate within a range of 19,200 to 24,000 points to be successful in the long term. Furthermore, investors need to be aware of potential risks arising from geopolitical tensions or economic uncertainties.
Overall, the recent tariff agreement between the US and China shows that the DAX continues to be influenced by global economic developments and that investors must pay attention to these dynamics to adjust their investment strategies accordingly.