Over the past few days, investors have once again focused on the tariff conflict between the US and the EU. The US inflation data was also eagerly awaited, as it may have provided clues for monetary policy. Meanwhile, market participants eagerly awaited the start of the US reporting season.
DAX
Source: TradingView
Hopes for a last-minute deal in the tariff conflict between the USA and the EU
US President Donald Trump recently threatened the EU with punitive tariffs of 30 percent on imports into the USA from August 1. EU Commission President Ursula von der Leyen said that the EU was prepared to work on an agreement by the aforementioned date. In this context, investors are likely to continue to believe in a last-minute deal.
China GDP grows more strongly than expected - despite trade dispute with the USA
From April to June, China's gross domestic product (GDP) increased by 5.2 percent compared to the previous year, according to the National Bureau of Statistics on Tuesday. Experts had previously expected an increase of 5.1 percent. In the first quarter of the year, GDP grew by 5.4 percent.
It remains to be seen to what extent the tariff conflict between the USA and China will have an impact.
ZEW index surprises - investors likely to bet on de-escalation in trade dispute
Investors' expectations of economic developments in the Federal Republic of Germany continued to improve in July. The ZEW Index of Economic Sentiment climbed to 52.7 points, up from 47.5 points in June. Economists had previously expected a rise to 50.4 points. Investors are likely to continue to bet on a de-escalation in the trade dispute.
US consumer prices higher than in May - core inflation lower than expected
At 2.7%, US consumer prices in June (year-on-year comparison) were significantly higher than in May (2.4%). US President Donald Trump spoke of "very low inflation" overall. At the same time, he once again put pressure on the US Federal Reserve (Fed) to lower key interest rates.
Core inflation, which excludes the drivers energy and food, amounted to 2.90% in the same period, after 2.80% in May. Economists had expected a rate of 3.0%.
Meanwhile, US producer prices on Wednesday were 2.60 percent lower than expected (3.0 percent) compared to the same month last year, after 2.70 percent in May.
US retail sales weaken - consumer sentiment data (Uni Michigan) round off the trading week
Meanwhile, US retail sales rose by 0.60% compared to the previous month, significantly more than expected (0.10%). The same sector had fallen by 0.90 percent in the previous month.
The consumer sentiment data for the USA from the University of Michigan (16:00) will also be in focus this afternoon.
Goldman Sachs benefits from high fluctuations on the stock markets
The major US bank Goldman Sachs (ISIN: US38141G1040) was able to benefit from the high fluctuations on the stock markets in the past quarter. Trump's unpredictable tariff policy caused investors to reallocate their portfolios due to the associated swings.
Goldman Sachs' profits climbed by 22 percent in the second quarter. Income from equity trading increased by 36 percent to 4.3 billion US dollars.
Goldman Sachs Group Inc.
Source: TradingView
Dow Jones Industrial Average Index
Source: TradingView
