A possible second term for Donald Trump in the USA is worrying investors. The leading index is falling slightly.
A possible second term for Donald Trump as US president also dampened investor interest in the German stock market on Tuesday. The current stock market swings could continue for quite some time, said a market observer. The Dax continued its weakness from the previous day and closed down 0.39 percent at 18,518.03 points. The MDax lost 0.43 percent to 25,576.74 points.
The downward trend also continued across Europe. The Eurozone’s leading index, the EuroStoxx 50, fell by 0.7 percent to 4,947.83 points. The country stock exchanges in Paris and London also closed with negative signs.
The US stock markets, however, climbed again after the previous day’s gains. The Dow Jones Industrial reached a record high and was trading around 1.2 percent above the previous day’s close at the end of trading in Europe. Stock market traders cite the so-called Trump trade as the reason for these movements. Investors in New York are therefore more pleased that Donald Trump’s chances of being re-elected have increased after the assassination attempt at the weekend.
Market strategist Thomas Altmann of QC Partners sees the DAX in a summer slump, which has recently been reflected in particularly low sales. The attempted breakout above the correction trend that has been in place since mid-May has turned into a false breakout for the time being. On Friday, the leading index rose to its highest level since the beginning of June, which is why some stock market traders already saw it on its way to a record high of 18,892 points.
There were losses in insurers and automobile stocks. The shares of reinsurers Munich Re and Hannover Re lost up to 2.3 percent due to gloomy industry forecasts.
The biggest loser in the DAX, however, was the sports car manufacturer Porsche AG, whose shares fell by 4.7 percent. Car stocks generally suffered from a very gloomy outlook in important sales markets. In addition to the already known problems in China, according to market observer Andreas Lipkow, trade relations with the United States are also at risk of becoming more difficult if Trump is elected to a second term as US president.
Fresenius was one of the best stocks in the DAX, gaining 2.6 percent. Deutsche Bank analyst Falko Friedrichs expects good figures for the second quarter and is predicting a better outlook.
In the MDax, Hugo Boss shares continued their downward trend and reached their lowest level since 2021. Ultimately, the fashion group’s shares lost 7.5 percent. This was due to disappointing key figures for the second quarter and unexpectedly significantly reduced annual targets.
Steel stocks came under pressure, especially Salzgitter, which fell by 4.0 percent. The US bank JPMorgan pointed to deteriorating economic indicators and signs of weaker demand.
Baywa shares remained in free fall, losing 9.6 percent. The day before, they had already fallen by 28 percent after a restructuring report was commissioned. There are no arguments in sight for a purchase.
On the foreign exchange market, the euro was last traded at 1.0884 US dollars. The European Central Bank had set the reference rate at 1.0902 dollars in the afternoon.
On the bond market, the yield on bonds fell from 2.49 percent the day before to 2.46 percent. The Rex bond index rose by 0.25 percent to 124.96 points. The Bund future rose by 0.41 percent to 132.41 points.
Source: Stern
