The German stock market starts the new week with a robust performance, which is attributed to a slight easing in the global tariff conflict. This development has positive effects on investor sentiment and is leading to a recovery in the markets.
Background and Causes
The US government has announced that it will not impose tariffs on certain electronic products such as smartphones and laptops for the time being, which is a relief for companies like Apple that manufacture their products in Asia. This decision has led to improved sentiment in the markets as it reduces trade uncertainty and enhances the competitiveness of the affected companies.
Market Reactions
- DAX: The German benchmark index DAX has recovered by about 2.2 to 2.4 percent in early trading, recording around 20,800 to 20,866 points. This recovery is a sign of the increased confidence among investors.
- EuroStoxx 50: Similarly, the EuroStoxx 50, which includes leading companies in the Eurozone, has gained about 2.2 to 2.3 percent and stands at around 4,892 to 4,899 points.
- MDAX: The MDAX, representing medium-sized companies in Germany, has increased by about 1.87 percent, standing at around 26,255 points.
Impact on Companies
- Technology Companies: In particular, companies in the semiconductor industry such as Infineon, Aixtron, and Elmos have benefited from the tariff suspension and have increased their stock prices.
- Salzgitter: In contrast, Salzgitter, a steel company, has suffered losses due to collapsed takeover talks.
Further Developments
Despite the positive reactions to the tariff suspension, US trade policy remains volatile. US President Donald Trump has announced plans to soon unveil new tariffs in the semiconductor industry, which maintains uncertainty in the markets. These announcements could lead to turbulence again in the future.
Overall, the German stock market appears stable at the start of the week; however, the situation in global trade remains tense and volatile.