Impending Tariff Decision by Trump: Potential Impact on DAX Index Unveiled
** Today in Focus: Anticipating the Impact of President Trump's Tariffs on DAX Investors and Bayer's Share**
Anxiety is in the air, with the impending announcement from US President Donald Trump on tariffs looming. The German stock market has seen a pullback this mid-week, as traders brace for the potential fallout. The DAX has taken a hit, dropping 1.25 percent, currently standing at 22,258 points, while the Euro Stoxx 50 has see-sawed, down 0.8 percent at 5,276 points.
With the tariff announcement set for 4 pm local time (10 pm German time) in the Rose Garden of the White House, uncertainty lingers like a dark cloud over investors. The question on everyone's lips is: will the US impose a blanket counter-tariff on all trading partners, a blanket tariff on specific countries, or different tariff rates from country to country?
The markets yearn for clarity, but the risk of further uncertainty remains palpable. According to analysts at Index Radar, "Trump is likely to secure maximum negotiating room by building up high tariffs as a threat." However, the key will be whether he also shows willingness to engage in dialogue – or if he prefers to let the global trade conflict escalate further.
DAX - Bayer Under the Microscope
At the bottom of the DAX heap presently is the share of Bayer, plummeting 4.4 percent. The healthcare sector has been under pressure due to Trump's potential tariffs on pharmaceuticals and medical devices.
Meanwhile, Zalando leads the pack, climbing 2.4 percent. Despite the market turbulence, US bank JPMorgan has maintained its price target of 29 euros for Zalando and kept it at "Neutral". Analyst Georgina Johanan is optimistic about Zalando's quarterly results set for release on May 6th, believing business will have improved again in March. Even in the first quarter, Zalando's strong start to the year should confirm continued growth, albeit the first quarter holds little significance for the online fashion retailer.
Featuring insights from dpa-AFX
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- The impact of President Trump's tariffs on DAX investors and companies like Bayer is likely to create a ripple effect in the European stock market, especially with the DAX currently standing at 22,258 points and Bayer plummeting 4.4 percent.
- In the midst of the tariff uncertainty, the healthcare sector, including companies like Bayer, is likely to face challenges due to potential tariffs on pharmaceuticals and medical devices.
- Amidst the market volatility, US bank JPMorgan is likely to maintain its optimistic stance towards Zalando, with a price target of 29 euros, despite the looming tariffs.
- Given the potential fallout from the tariffs, politics is likely to play a significant role in shaping the future of finance and business, with the announcement set for 4 pm local time at the White House.
- With the tariff announcement imminent, general-news outlets, such as dpa-AFX, are likely to report on the potential impact of the tariffs on various industries and companies, including the DAX and specific companies like Bayer.
