An intensifying power struggle for the staffing of the US Federal Reserve (FED) is likely to keep the German stock market in check on Tuesday.
On the Frankfurt Stock Exchange, the DAX at the start of Tuesday was 0.67 percent down to 24,110.08 points. The leading index remains in early trade.
All -time high of the DAX
On July 10, the German leading index reached a new record high at 24,639.10 points. So far, the highest closing course in the DAX history is 24,549.56 index points.
Power struggle for US Federal Reserve Fed: US President Trump once again causes uncertainty
US President Donald Trump wants to relieve the FED governor Lisa Cook with immediate effect from her position on the board. In his letter to Cook, the President said that there were sufficient reasons to assume that she had given incorrect information in one or more mortgage contracts. However, Cook made it clear that she wanted to fight for her post.
“The events around Fed governor Lisa Cook has the potential to ensure new uncertainty on Wall Street,” wrote analyst Thomas Altmann from the asset manager QC Partners. It is not just the question of what is actually about the allegations against Cook. “It is about Donald Trump’s possibility to bring the Fed to the line of lower interest rates he wanted with new appointments,” said Altmann.
Trump’s new threats: Restremning escalation in the trade conflict with China?
In -eye investors also have the trade conflict between the United States and China. Trump threatens China with punitive tariffs of up to 200 percent if Beijing does not reliably supply the United States with magnets from rare earths. At the same time, Trump admitted that such drastic measures would mean a collapse of the trade with China. “We have a much more powerful remedy, that’s tariffs. If we raise 100 percent, 200 percent tariffs, we would no longer do a trade with China at all.” This would also be okay if it had to be.
Redaktion finanzen.net / dpa-fx / Dow Jones Newswires