Middle East tensions, telecom companies, SAP, Siemens Energy, FMC, Rheinmetall, and VW under scrutiny once more
Tuesday's Tale:
Here's a lowdown on what's brewing in the market world, especially the DAX, on this fine Tuesday.
The DAX, after a six-day ride in the red, managed a recovery of 0.8% on Monday, closing at 23,699.12 points. But, the party might not last long, as predictions suggest a dip by another 0.9% today, hitting 23,495 points.
The markets are looking askance at US President Trump for causing a new wave of uncertainty. At the G7 summit in Canada, Trump cut his stay short on Monday, citing Middle East strife as the reason. The rest of the summit carries on without him. Market experts ponder if the US will resort to military intervention in the Middle East conflict. However, the odds seem to favor a diplomatic resolution.
The economic action today is centered on ZEW economic expectations for June in the morning and retail sales figures for May in the afternoon. Corporate events are quiet, but there are some annual general meetings lined up, including Westwing, Bike24, Deutsche Rohstoff, and FMC's Capital Markets Day. In the evening, the autonomous Volkswagen ID.Buzz AD will have its premier in Hamburg.
Traders will keep an eye on the movers and shakers of the DAX from Monday. Siemens Energy, Sartorius, and Daimler Truck led the pack, while Beiersdorf, Symrise, and Rheinmetall ended up at the bottom of the DAX. Deutsche Telekom could face pressure due to the sale of T-Mobile shares, but SAP might gain from a buy recommendation by Piper Sandler.
Bitcoin shed some ground after Monday's surge, trading at $107,296 on Tuesday. Gold is holding steady at $3,393 per troy ounce.
Global Watch:
US stock exchanges gained on Monday, with the Dow Jones Industrial rising 0.8% to 42,515.09 points, the S&P 500 advancing 0.9% to 6,033.11 points, and the Nasdaq 100 increasing 1.4% to 21,937.57 points.
On Tuesday morning, the Japanese Nikkei 225 gained 0.5%, while the Chinese CSI 300 remains unchanged. The Hong Kong Hang Seng dips 0.3%. THE STOCK MARKET SHERPA will keep you updated on all the happenings on the national and international markets.
Fun Facts:
- The DAX is expected to hover around 22,875 points on Tuesday, with a possible range between 21,274 and 24,476 points[1][4].
- The DAX is a significant indicator of the health of major German corporations and economic sentiment[5].
- A rising or steady DAX signals investor confidence and positive economic conditions, contributing to business investments, employment, and consumer spending.
- In June and July 2025, the DAX could see moderate growth, with a modest monthly gain of 0.7%[1][4].
- Geopolitical risks and Federal Reserve policies' uncertainties could impact the DAX and the German economy[3].
Investors in the capital markets should pay attention to the corporate events of Westwing, Bike24, Deutsche Rohstoff, and FMC, as well as the Capital Markets Day, taking place today. The industry of finance is keeping a close eye on the US-Middle East conflict, as it could potentially cause further uncertainty in the market. Despite the recovery of the DAX on Monday, predictions indicate a potential dip of 0.9% today, showing the unpredictable nature of investing in the business world.
