Trump’s Words and Their Consequences
Donald Trump’s recent statements, which send positive signals to China and the Federal Reserve, have influenced the DAX and led to a small market fireworks display. This unexpected development is particularly interesting for investors as it occurs despite negative economic forecasts, such as the IMF’s downgrade of growth projections.
Trump and China
Trump’s soothing words towards China have led to some relaxation, which positively impacts the markets. This easing could lead to a renewed turnaround in American trade policy, which is of interest to investors in Frankfurt.
Federal Reserve and Jerome Powell
The Federal Reserve, led by Jerome Powell, plays a central role in global economic policy. Trump’s positive signals towards the Fed could lead to a stable monetary policy, which also has positive effects on the markets.
DAX Reaction
The DAX has reacted to these developments with a fireworks display in stock prices. Investors are hoping for a continuation of these positive trends, which could possibly lead to new record highs if the DAX climbs back above 22,200 points by the end of the month.
Comparison with Wall Street
In contrast, the S&P 500 on Wall Street shows a persistent downward trend since the beginning of the year. This indicates that international investors rate Trump’s policies as rather negative for US stocks, while seeing advantages in German and European equities.
Current Market Situation
- DAX Price: The DAX has significantly recovered since its low in April. On April 10, a substantial gain of 7.81% was recorded, bringing the index to 21,207.76 points. Currently, the DAX stands at about 21,278.68 points.
- Market Sentiment: Market sentiment is good, especially following positive quarterly figures from SAP, which positively influenced the DAX in pre-market trading.
Conclusion
Donald Trump’s positive signals have positively influenced the DAX and led to a small fireworks display in stock prices. Despite negative economic forecasts, investors see potential in a renewed turnaround of American trade policy, making the DAX still interesting. The differing reactions of the markets in Europe and the US show that international investors evaluate Trump’s policies differently.