Dax on record course: Investors are concerned about Trump's economic policy!

Dax on record course: Investors are concerned about Trump's economic policy!

The DAX started with a positive trend at the beginning of the new week and reached a new one on Tuesday. The report by Tagesschau The index will probably continue to be further over the 24,000-point brand. Broker IG estimates the DAX 0.3 percent higher at 24,164 points. The previous day, the DAX was able to recapture the 24,000 points mark with an increase of 0.7 percent to 24,091 points. Experts even see potential for an increase to more than 26,000 points as long as the index remains over 23,476 points.

Asian exchanges are also positive: the Nikkei index in Tokyo increases by 0.8 percent, while the Shanghai index increases by 0.5 percent. In the meantime, investors are looking forward to a possible telephone conversation between US President Trump and China's head of state XI Jinping, which could possibly have an impact on global markets. Wall Street also signals upward potential through positive requirements, with an increase in Dow Jones by 0.5 percent to 42,519 points and the S&P 500 by 0.6 percent to 5,970 points. However, the US futures are minimally listed in the minus.

shock by weak US data

On Wednesday afternoon, however, the DAX abruptly lost its profits. According to a report by The shareholder proved to be a privacy than weaker than expected, which led to an immediate decline in more than 200 points within a few minutes. The number of employees only rose by 62,000 compared to the previous month, while 115,000 had been expected. In addition, the job structure was revised from 155,000 to 147,000 for March.

It is particularly alarming that the gross domestic product (GDP) fell by 0.3 percent in the first quarter, although it was expected that it only drops by 0.2 percent. These declines provide concern for a possible recession and the effects of Trump's customs policy. The effects of customs measures are not yet completely reflected in the current economic data, which further increases uncertainty on the stock exchanges.

inflation development and market reactions

The current situation is also influenced by the inflation data from the USA. In January, consumer prices rose by 3 percent compared to the previous year, which the markets already unsettled at the time, as Shareholder reported. Inflation exceeded expectations, which led to strong price movements in the markets.

During the DAX in the past few days, the returns of US state bonds show up in the upward trend. The Federal Reserve strives for an inflation rate of 2 percent in the medium term, which means that stability in interest rate policy continues to be sought. Investors are wondering how the current market constitution and the economic indicators will affect the upcoming decisions of the US Federal Reserve.

In the middle of these turbulence, analysts expect that the DAX and the US exchanges may remain volatile, while the investors wait for a clear direction of the business data.