DAX with chance of a record - Another deal with light and shade

Speculation about a trade agreement between the US and the European Union has paid off. The handshake in Scotland could propel the DAX to a new record high at the start of the week. The no-deal scenario, including a downward trend reversal, has been avoided. From now on, the DAX can once again rely on Wall Street's strength with less headwind.

Whether the DAX's drifting will lead to a continuation of its outperformance relative to the US depends on what the EU does with the new trade situation with the US. The task now is to strengthen its own economy and ensure that the spark that has spread to the European stock markets also reaches the real economy. The trade deal with the US alone will not do this.

The impression remains that the agreement isn't really a win-win – for either side. The good thing is that an escalating spiral of tariffs and counter-tariffs was avoided. The deal still feels like a defeat. It's simply the best that could have been achieved. Nothing more could have been achieved. There's no sign of community spirit in transatlantic trade. The trade deal bears the hallmarks of Trump's "America First" approach.

As with Trump's trade agreement with Japan, details are once again unclear. There are conflicting statements regarding pharmaceutical products, for example, which account for a quarter of US imports from the EU. It's important to clarify this. However, the fact that the auto tariffs have also been reduced to 15 percent is very good news. Auto stocks are likely to benefit from the decision this morning.

Charts on today's financial market topics, further videos and market commentary from Jochen Stanzl can be found throughout the day at cmcmarkets.com .

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