Prices remain relatively stable for Dax at the beginning of the week
In the ongoing trade dispute between the European Union (EU) and the United States, no agreement has been reached, according to market analyst Andreas Lipkow. The negotiations, which include EU Commission President Ursula von der Leyen and officials from the European Commission, recently resulted in a new trade deal imposing a uniform 15% tariff on most EU exports to the USA, including pharmaceuticals.
The uncertainty caused by this dispute is not going unnoticed. The topic is currently somewhat underrepresented among market participants, but Lipkow predicts that this may change in the coming trading days.
The ongoing dispute has already shown signs of impacting the markets. On Monday, the Dax started the new trading week with barely changed prices, closing at 24,307 points, experiencing a minimal gain of 0.1 percent compared to the previous trading day.
The price of gold, often seen as a safe haven in times of economic uncertainty, has increased by 1.4 percent. One ounce now costs 3,398 US dollars in the afternoon. The price per gram of gold was 93.28 euros.
The oil price, however, decreased slightly. A barrel of the North Sea Brent blend cost 68.95 US dollars at 5 pm German time on Monday, a decrease of 33 cents or 0.5 percent compared to the previous trading day.
Despite the potential for volatility, the European common currency strengthened against the US dollar on Monday afternoon. One euro traded at 1.1711 US dollars, and one US dollar was available for 0.8539 euros.
Investors, according to Lipkow, are acting cautiously due to developments in the USA. The trade dispute could cause volatility on the European stock markets by the end of July, he warned.
Lipkow also noted a subdued mood on the markets at the start of the week. However, he suggested that the representation of the trade dispute among market participants could increase in the coming trading days, potentially leading to more informed and cautious investment decisions.
As the negotiations continue, both parties will need to find a resolution to ensure stability and predictability in the global economy. The outcome of these negotiations will undoubtedly have far-reaching implications for both the EU and the USA, and the world at large.
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