Is the DAX now settling north again? The start of the week yesterday was promising and it is now eagerly awaited how the day of the "liberation" in the USA will affect the stock markets. The stock markets in the USA are already clearly punishing US policy in advance, but will the decisions regarding US tariffs be as drastic as investors expect, better or even worse? Estimating this is like a bet, investors have no choice but to wait and prepare for the decisions. The following can be learned from the example of the German debt package. The positive mood was priced in in the development and the DAX even made a new record high. Immediately after the adoption of the debt package, profits were taken directly. Taking this into account, a kind of relief could actually spill over through the financial market if the tariffs are not quite as drastic as they seem. The stock markets may then be facing another impressive rally and bargain hunters will get their money's worth.
British stock market recovers after sharp sell-off on Friday
The British stock market was also able to recover on Monday and closed 0.6 percent higher than at the opening. But the decision from the USA is also eagerly awaited in Great Britain. Traders also watched economic data and company news. The S&P Global UK Purchasing Managers' Manufacturing Index (PMI), a measure of activity in UK factories, revised slightly upwards in March to 44.9 from the preliminary reading of 44.6, but it remained at its lowest level since October 2023, when the country was in recession. Among stocks, Rolls-Royce Holdings was the top performer with a 4.1% gain, followed by insurer Hiscox, retailer JD Sport, lender Barclays and pest control company Rentokil Initial. Advertising giant WPP PLC landed at the bottom of the FTSE list after Bank of America announced its quarterly results and predicted a further decline in comparable revenue.
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