Background of the Agreement
- Tariff Reduction: The USA has reduced its tariffs on Chinese imports from 145 percent to 30 percent, while China has cut its tariffs on US imports from 125 percent to 10 percent.
- Time Limitation: These tariff reductions are agreed upon for a period of 90 days to allow for further negotiations.
- Exceptions: Certain special tariffs, such as those on fentanyl, remain in place.
Effects on the DAX
- Market Sentiment: The agreement has led to positive market sentiment, indicating economic stability and a de-escalation of the trade conflict.
- Rise of the DAX: The DAX is approaching the psychologically significant level of 24,000 points, indicating increased investor confidence in economic development.
- Relevance for Investors: This development is particularly relevant for investors, as it suggests an improved economic outlook and makes investments in the market more attractive.
Long-term Perspectives
- Further Negotiations: The agreement can be seen as a form of “ceasefire” that allows for further negotiations in the next 90 days.
- Risks and Opportunities: Despite the positive development, there is a risk that tariffs could be increased again after the deadline if no permanent solution is found.
- Global Economy: The de-escalation of the trade dispute between the two largest economies in the world could positively impact the global economy and contribute to market stabilization.
Overall, the agreement between the USA and China shows that both sides are willing to de-escalate the trade conflict and seek long-term solutions. This could lead to further strengthening of the markets as long as negotiations are successful.