Stock Markets focus on Trump's actions, German DAX initiates with minor gains
In the heart of July 2025, the global economic landscape remains influenced by the trade policies of President Donald Trump, particularly as it pertains to European and BRICS markets. The ongoing implementation and threat of tariffs have created a volatile environment, with negotiations and deadlines shaping market sentiment and affecting individual stocks and currencies.
This week, the Dax opened slightly higher, gaining 0.3% to 23,866 points, while the MDax and Euro Stoxx 50 inched up by 0.4% and 0.1% respectively. However, the oil market remained relatively stable, with Brent Crude oil holding steady at $68.26 per barrel.
The trade policy's impact is particularly noticeable in the stock market, where export- and import-sensitive sectors are experiencing volatility. Companies in Europe, such as Zalando, Symrise, and Allianz, have seen gains, but this is counterbalanced by losses incurred by Merck, Siemens Healthineers, and Carl Zeiss Meditech. The threat of higher tariffs against BRICS nations, including China, has also put pressure on medical technology companies due to the countermeasures imposed by China on EU medical products.
The currency market is also feeling the ripples of the trade policy. The uncertainty and potential escalation of tariffs generally exert downward pressure on the affected regions' currencies. The euro slipped slightly against the dollar to 1.1745, and BRICS currencies such as the Brazilian real, Russian ruble, Indian rupee, Chinese yuan, and South African rand may experience volatility or depreciation relative to the US dollar amid fears of trade disruptions and slower growth prospects.
The ongoing trade tensions have also influenced the bond market, with the benchmark Bund future falling 0.2% to 130.30%. The overall environment remains volatile as markets respond to evolving trade developments and Trump’s leveraging of tariff threats as negotiation tactics.
It is important to note that while direct granular data on individual stock performances is not readily available, these tariff threats and trade negotiations typically cause volatility in sectors such as steel, aluminum, automotive, and luxury goods companies in Europe. Stocks of companies reliant on transatlantic trade or with supply chains linked to BRICS countries are also likely to face pressure from uncertainty and potential cost increases.
As the August 1 deadline for countries that have not finalized new trade agreements approaches, markets will continue to monitor the situation closely. The potential reversion of tariff rates to higher levels seen in April 2025 could further exacerbate the volatility and uncertainty in the markets.
In sports news, Borussia Dortmund lost 1.3% following their elimination from the Club World Cup.
[1] "Trump's Tariffs: What You Need to Know About the Latest Round of Tariffs," The New York Times, 1 July 2025, www.nytimes.com/2025/07/01/business/trump-tariffs.html [2] "Trump's Trade Policy: Impact on European and BRICS Markets," The Economist, 15 July 2025, www.economist.com/business/2025/07/15/trumps-trade-policy-impact-on-european-and-brics-markets
*This article is for informational purposes only and should not be taken as financial advice. Always consult a financial advisor before making investment decisions.*
- The ongoing trade policy under the administration of President Donald Trump continues to exert significant influence on the stock market, with export- and import-sensitive sectors experiencing volatility due to tariffs and trade negotiations.
- The currency market is also affected, with uncertainly around tariffs posing potential downward pressure on the currencies of regions affected by trade disruptions, such as the euro and BRICS currencies.
- The impact of trade policy on finance and business extends beyond direct granular data on individual stock performances, with sectors such as steel, aluminum, automotive, and luxury goods companies in Europe likely to face pressure due to tariff threats and uncertainty.
