The German stock market will also be weighed down by current developments on the customs front on Tuesday. Investors are now looking forward to Davos.
The DAX opened Tuesday trading with a discount of 0.85 percent at 24,747.35 points. After that, it remains stuck in the loss zone and continues to get closer and closer to the 24,500 mark.
Right from the start, the leading index was immediately below the important chart support of 24,750 points. This area is where the 21-day moving average line runs, which is considered a key short-term trend indicator. With the jump below this mark, the DAX is trading below this trend line for the first time since the beginning of December.
The latest DAX record
On Tuesday, January 13th, the DAX reached an all-time high of 25,507.79 points, exceeding the 25,500 point threshold for the first time in its history. Ultimately, it ended the day at 25,420.66 points, which was a new record based on the closing price.
Escalation in the Greenland dispute: Trump announces punitive tariffs
The day before, announcements of possible new tariffs against eight European NATO states, including Germany, had already caused strain on the stock markets. “You thought that at least this one big issue would be more or less settled, then it starts again – the tariff war,” wrote Thu Lan Nguyen from Commerzbank. There was a threat of conflict, new tariffs and counter-tariffs, and increasing uncertainty for companies on both sides of the Atlantic.
Netflix, Davos, ZEW & Co.: What moves the markets today/h2>
In the USA, quarterly figures from the streaming giant Netflix are due out after trading this Tuesday.
Basically, the finger is still on the sell button, it is said, but concrete political decisions from the EU are awaited. The personal proximity of politicians at the World Economic Forum in Davos in particular allows for short decision-making processes in order to avoid escalation due to Trump’s threats to Greenland. As long as this hope still exists, another sell-off on the stock exchanges should be avoided. The economic data is currently irrelevant because it can hardly capture the escalation in Greenland. Many German business associations such as the VCI had complained the day before about the unpredictability of the situation. Neither costs, orders nor income can be calculated given the unreliable conditions. The ZEW index of economic expectations is unlikely to capture this situation. A verdict from the US Supreme Court is due in the afternoon. He could then comment on the legality of the US tariffs, but he does not have to.
Editorial team finanzen.net / dpa-AFX / Dow Jones Newswires