FRANKFURT (dpa-AFX) - Volatility on the stock market remains extremely high - as does the range of US government decisions. After the US president caused massive price losses since last week with his flood of tariffs, he is now blowing into a recovery rally with their 90-day suspension. "The situation is not chaotic, it's crazy," commented Carsten Brzeski, Chief Economist for Germany and Austria at ING.
After the Nasdaq indices had shot up by double digits the previous evening, the Dax is now likely to follow suit with a jump of around 8 percent to 21,237 points on Thursday, according to the IG broker's indication. It would thus make up around three quarters of its losses since the tariff announcements a week ago and return above its 200-day moving average. It would then have recovered 15 percent from the low since Monday's crash at 18,489 points, which wiped out all its gains for the year.
US President Trump wrote on the Truth Social platform that he had ordered a 90-day pause and that a reduced tariff rate of ten percent would apply during this period. However, this explicitly does not apply to China: instead, Trump raised the tariff rate for Chinese imports once again - to a total of 125%. However, the Chinese mainland indices are also rising, albeit much less than the stock markets in Tokyo and Seoul./ag/zb
