DAX Hovers At Yearly Highs, Auto Tariffs Decision Eyed
Without economic reports from Europe, movement in the DAX were limited in yesterday’s trading. The index opened the week at 13256.45 and traded lower to close at 13,207.02.
MTU Aero Engines led gains as it closed 1.45% higher at 244.30. It was followed by Continental which was up by 1.40% at 124.70 then Volkswagen at 177.92 which was up 1.13%.
Market participants are awaiting updates on the decision by the Trump administration regarding auto tariffs. Earlier this year, US President Donald Trump announced that they plan on imposing a 25% levy on European-made cars sold in the US. The deadline for the decision was initially set last week, on November 14. Key officials like European Commission President Jean-Claude Juncker have said that the US will not make good on its threat. However, without any confirmation from the White House, it can still go either way.
Better-than-expected economic data pushes the DAX higher…
Earlier today, data on euro zone’s current account showed a bigger-than-expected account surplus. Data for September revealed that the value of the region’s exports exceeded the value of imports by 28.2 billion EUR, which was 5.9 billion EUR more than consensus. The DAX is trading higher following the news at 13,271.09.
There are no more reports left on the calendar for today. This means the German equities will likely take its cue from market sentiment. Risk appetite could trigger a rally to yearly highs at 13,592.25. Confirmation that the US will not pursue imposing auto tariffs and positive developments on US-China trade negotiations will likely put markets on risk-on mode. Alternatively, risk aversion could push the index down to last week’s lows around 13,147.11.Download our latest quarterly market outlookfor our longer-term trade ideas.
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