One of the key topics for investors on both sides of the Atlantic was once again the developments in the trade dispute. In particular, the relief in the tariff conflict between the US and China has revived the risk appetite of market players, even if question marks remain. The fact that price pressure in the United States has eased further may have fueled general interest rate cut fantasies. In the reporting season, at least in Germany, there was always fresh impetus.
DAX
Source: TradingView
Trade dispute between the USA and China: punitive tariffs fall by 115 percentage points against each other
The rapprochement in the trade dispute between the world's two largest economies has eased tensions worldwide. Last weekend, both parties agreed to lower their mutual tariffs by 115 percentage points each. Beijing is now demanding ten percent for imports from the USA instead of the previous 125 percent. The USA is now setting a tariff of 30 percent for Chinese imports, down from 145 percent previously. However, the regulation has only been in force temporarily for 90 days since Wednesday.
US inflation falls - interest rate cut fantasies may have gained momentum
US consumer prices rose by 2.30 percent in April compared to the same month last year, less than economists had previously estimated (2.40 percent), after also rising by 2.40 percent in March.
At midweek, it was the German inflation data that allowed investors to breathe a sigh of relief. Prices in this country rose less sharply in April than in the previous months. At 2.1 percent, the inflation rate was at its lowest level since October, after 2.2 percent in March and 2.3 percent in the two previous months.
EU GDP grows less strongly - US producer prices also fall
On Thursday, the EU gross domestic product caused a stir, rising by 0.30 percent compared to the previous quarter and thus less strongly than expected (0.40 percent).
Retail sales in the United States rose by just 0.10% month-on-month, which was slightly better than expected (0.00%), although this followed a rise of 1.40% in the previous month.
The easing inflation trend was confirmed by US producer prices (excluding energy and food), which rose by 3.10 percent year-on-year and were thus as high as expected, after 3.30 percent in March.
In a generally manageable economic calendar, investors will be looking at the preliminary consumer sentiment data from the University of Michigan today (16:00).
Siemens with upswing in China
The technology group Siemens has won more orders in China and is sticking to its forecast in view of the economic uncertainties. In the industrial business, profits rose by 29 percent to 3.2 billion euros in the past quarter. Sales climbed by six percent to 19.8 billion euros.
Siemens
Source: TradingView
Dow Jones Industrial Average Index
Source: TradingView
