The German stock market was significantly weaker on the second trading day of the week.
The DAX had marked its opening price slightly below the previous day’s level. As the day continued, the leading index fell more significantly and increased its losses. At times it even slipped below the 18,100 point mark. The last hours of trading were somewhat more pleasant. The German stock market barometer closed at 18,164.06 points (minus 0.69 percent).
The TecDAX had also started somewhat weaker and then also remained on red terrain.
The day before, the leading index had already gotten stuck at the 50-day average line, which had already been overcome in the meantime, at 18,391 points, and this mark remained out of reach on Tuesday. However, the positive development on the US markets saved the domestic stock market from an even more significant loss on Tuesday. The 18,000 points continued to serve as an important support mark.
Investors will continue to focus on the election results from neighboring France, where right-wing nationalist and bourgeois parties are still jostling for power after the first round of the parliamentary elections. It looks as if investors are currently just waiting for really bad news to continue cashing in, noted capital market strategist Jürgen Molnar of RoboMarkets. “There is much to suggest that the market will fall into a summer slump. How deep is difficult to predict and will probably also depend on the quality of the news and developments in France, where the runoff election will take place next Sunday,” added Molnar.
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European markets recorded losses on Tuesday.
The EURO STOXX 50 lost ground at the start and then slipped deeper into red territory.
Politics remained in focus on the second trading day of the week, after the results of the first round of the French parliamentary elections were better than feared, but now there is a threat of political deadlock, which will make necessary reforms even more difficult. The EU’s ability to function is also at risk of being increasingly restricted.
On the economic side, the publication of European consumer prices for the month of June was on the agenda. Inflation in the euro area fell slightly in June, but the underlying price increase remains persistent.
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US stock markets may recover early losses on Tuesday.
The Dow Jones Index The session began 0.16 percent lower at 39,108.25 points, but then jumped straight to the zero line. The traditional US index then oscillated rather listlessly around the previous day’s closing price.
At the NASDAQ-Composite The initial discount was 0.4 percent at a starting price of 17,808.04 units. After that, however, things were rather friendly.
After a moderately positive start to the week, the US stock markets are hovering around the zero line on Tuesday, but the general trend is again positive. Due to the upcoming trading restrictions due to the holidays and the important labor market data on Friday, the price trend remains rather unclear. There will be shortened trading on Wednesday due to the national holiday, and the stock markets will be closed on Thursday, July 4th.
In general, it seems as if the rally on the US stock markets is taking a break for a while. No new records have been set for several days. Whether this is just a breather – or the start of a larger correction – will depend primarily on the upcoming reporting season.
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The major Asian markets continued their upward movement on Tuesday.
In Tokyo, the Nikkei225 1.12 percent and closed trading at 40,074.69 points.
On the Chinese mainland, the fluctuations were manageable: The Shanghai Composite closed at 2,997.01 points with a slight increase of 0.08 percent. The Hang Seng In Hong Kong, it rose 0.21 percent and closed at 17,755.71 points.
The Tokyo stock exchange was able to benefit from the once again weak yen and therefore gained more than many other stock exchanges in the region. The yen has reached its lowest level against the dollar in the past 38 years, emphasized the market strategists at Deutsche Bank. This means that the weakness has continued despite verbal interventions by the finance minister. The export-oriented country tends to benefit from a weak currency.
The other stock exchanges in the Far East mostly showed mixed developments.
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