Investors are scrutinizing recent data from the U.S., with Dax showing signs of an upturn.
DAX Remains Cautiously Optimistic Amid Ongoing Tariff Negotiations and Earnings Season
Investors are keeping a close eye on the ongoing tariff negotiations between the European Union and the United States, according to market expert Andreas Lipkow. The hope is that a deal can be reached to reduce the threatened 30 percent tariffs to 15 percent. This potential agreement is one factor supporting the DAX's recent resilience near its record highs, although attempts to break above 24,500 points have so far been unsuccessful.
Lipkow notes that the EU is in a weaker position compared to the US in these negotiations. While recent agreements like the US-Japan tariff deal provide some optimism, details and sector-specific concessions remain uncertain, particularly in automotive trade.
Other key factors investors are watching include the ongoing corporate earnings season in Germany, which will have a significant impact on market momentum. The Federal Reserve's interest rate decisions and upcoming major economic data releases, such as US labor market reports, are also critical catalysts that may drive further market movement.
The oil price edged higher on Tuesday, increasing by 34 cents or 0.5 percent compared to the previous trading day. The European common currency, the euro, showed some weakness on Tuesday afternoon. Investors are looking forward to upcoming macro data from the US and the quarterly results of US tech giants Meta and Apple.
According to Lipkow, market participants have digested the heavy trade agreement but have not fully digested it yet. The DAX's technical resistance is evident as it struggles to decisively break above 24,500 points, indicating limited upward momentum.
Investors remain somewhat cautious, aware of the latent risk of negative news over weekends and throughout upcoming trading days. The risks of earnings disappointments persist, particularly amid challenging business conditions such as a strong euro and tariff uncertainties.
This balanced but cautious outlook reflects Lipkow's analysis of current market conditions for the DAX as of August 2025. The market remains optimistic, but uncertainty remains due to ongoing tariff negotiations and the earnings season.
*Sources: [1], [2], [4], [5]
*Note: This article is for informational purposes only and should not be considered financial advice.
Top Gainers and Losers on the Dax
On Tuesday, shares of MTU, Rheinmetall, and Siemens Energy were among the top gainers on the Dax. In contrast, Porsche, BASF, and Symrise were among the leading losers.
*Sources: [1], [2]
Businesses and investors are carefully monitoring the ongoing tariff negotiations between the European Union and the United States, as a possible reduction in tariffs could positively impact the stock-market, notably the DAX. The ongoing corporate earnings season in Germany is another crucial factor influencing market momentum. In terms of investing, the ongoing strength of the euro and the uncertainties surrounding tariffs present challenges that could lead to earnings disappointments.
