"This agreement can only be about damage control." That's the sentiment echoing from many prominent European politicians after the US-EU tariff deal was announced. The DAX, which had already priced in an agreement for weeks, saw a "sell the facts" reaction yesterday. Investors reacted with disappointment, opting to pull profits from the market rather than continue investing in DAX stocks. The result: a -1.02 percent performance for the DAX, causing the German leading index to fall below the 24,000-point mark, closing at 23,970.36 points.
Porsche & Volkswagen Relinquish Gains – Infineon Shines
Among individual stocks yesterday, Infineon managed a 1.4 percent gain, but the big losers were Friday's winners. Both Porsche and Volkswagen completely gave back their previous gains. Porsche shares fell 4.1 percent, and Volkswagen shares also took one of the bottom spots with a 3.6 percent loss. For DAX investors, it will be crucial to see today whether the downward momentum intensifies further. In after-hours trading, the sell-off slowed somewhat, but there are currently few signs that an immediate rebound is likely.
Has the Euro's Uptrend Ended? Currency Under Pressure
A quick look at the euro reveals that the common currency has also come under significant pressure. Yesterday, the euro lost 1.36 percent against the US dollar, developing strong downward momentum that could very well continue. The euro is trading significantly below 1.16 US dollars again and appears to be bidding farewell to its uptrend for now.
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