Trump's inauguration smashes historical benchmark, with automobile stocks such as VW and Mercedes under scrutiny
New Spin on the DAX Record Break:
The DAX might smash records again on the day of US President Donald Trump's inauguration, here's the lowdown.
Wowza! The German leading index has struck gold yet again, reaching a record high on Donald Trump's inauguration day—that's no joke! It's the fourth consecutive day of record-breaking numbers, with the DAX floored at an eye-popping 21,000 points for the first time. The Euro Stoxx 50 showed up, too, working its magic, currently climbing 0.5 percent and sitting pretty at 5,176 points.
Trump's taking the reigns from Joe Biden in Washington, with the US markets giving the day off due to the "Martin Luther King Day." The US absence might've slowed the trade in Germany.
Let's hear it from Mathieu Savary of BCA Research: "President Trump's inauguration packs a punch for Europe." Europe might just end up getting snared in any trade war shenanigans. "But the real showstopper is uncertainty," Savary warns. If the Old Continent and the US can hash out a compromise, this uncertainty—poof!—should vanish.
DAX (WKN: 846900): In the driver's seat are auto stocks like Mercedes and VW
Which stocks are raking in the dough right now? Look no further than BMW, Daimler Truck, and Mercedes, all seeing a sweet three percent boost. The source of their triumph? A Wall Street Journal report stating that the Trump administration plans to sit on the sidelines with regard to slapping new import tariffs on the big day. Instead, they're cooking up a plan to have their agencies take a closer look at trade relations with China and the US's neighboring lands.
On the opposite side of the coin, Siemens Energy's stocks are feeling the heat with a current plummet of 2.3 percent. UBS predicts the good times are already baked in for Siemens Energy, collecting the award for the DAX's giant gainer of last year. So, it's best to offload those shares, says UBS.
The Big Question:
Cryptocurrency, anyone? Should you snatch up the new Trump Coin while you can?
Or...
Mega rally or mass dump? What experts reckon about the stock market these days.
- The surge in the DAX, reaching an all-time high on the day of US President Donald Trump's inauguration, is causing a stir in finance and general-news circles, as the political climate and potential trade wars may impact the european business sector.
- The focus on certain stocks in the DAX, such as Mercedes and VW, shows the impact of investing decisions that are influenced by political events and market analysis, as the Trump administration's stance on import tariffs can have a significant effect on the automobile industry.
- In the realm of technology and investing, the emergence of new cryptocurrencies like the Trump Coin raises questions about market volatility and potential returns, with experts offering varied opinions on whether a mega rally or mass dump might be on the horizon for the stock market.
