DAX Broadly Higher as EU-US Trade Tension Eased
European stock markets are trading higher today, as concerns over rising tensions in trade between the US and Europe showed signs of weakening. The German DAX index grew by 1.12% to trade at 12.722 level.
Yesterday, the EU and US announced that they had agreed to hold off on any further tariffs while talks are ongoing. US has agreed to reassess tariffs on the EU steel and aluminum. The news boosted the DAX index, as automaker shares have jumped. BMW has climbed 3.20%, Daimler is up 2.80% and Volkswagen has risen 3.53%. Bank shares are also higher, with Commerzbank up 1.46% and Deutsche Bank up 1.73%.
German consumer sentiment is set to weaken slightly in August, as fears that a trade conflict between Europe, the United States and China could hurt Europe’s largest economy remain high. The consumer sentiment indicator, published by the GfK institute and based on a survey of around 2.000 Germans, fell to 10.6 going into August from 10.7 a month earlier. Analysts had forecast the index would stay at 10.7. An economic expectations index fell 7.6 points to 15.7 points, the lowest in almost a year and a half.