Tariff Disputes and Financial Worries: Tense Start to the Week Expected for the DAX
The DAX suffered a significant setback last trading week with a sharp loss of 2.3 percent (over 500 points). This sell-off was triggered by US President Donald Trump's tariff decisions against China, and the conflict is far from resolved. Now, the next trade skirmish looms: the US is considering punitive tariffs against India over its continued purchase of Russian oil. While Trump claims India assured him, they would reduce purchases, the Indian government denies such an agreement. Additionally, rumors of a potential new financial crisis are weighing on sentiment, as the earnings season in the US signals turbulence at some regional banks. This week, investors will be keenly watching the US inflation figures on Friday, which could provide crucial clues about a possible imminent interest rate cut and thus a new direction for the DAX.
Continental Defies the Downturn: Surprise Winner of the Week
Continental stock emerged as the surprising winner on Friday, soaring by an impressive 11.4 percent against the general market trend. The automotive supplier presented quarterly results that significantly exceeded analyst’s expectations. The company succeeded in pushing through higher prices while simultaneously reducing costs, allowing the tire segment to outperform its own corporate forecasts. This strong outperformance on a deeply red DAX day sends an optimistic signal for individual stocks.
DAX at a Crossroads: Technical Rebound Potential After Sharp Correction
From a technical chart perspective, the DAX reached a critical level on Friday: the index settled exactly on the 100-period moving average. Since DAX managed to regain some ground in after-hours trading, the chances of a technical recovery at the start of the week are good. Further stability or even a positive start would be an important signal to negate the downward pull of the last week.
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