The major European indices closed the day with mixed results. The German DAX and France’s CAC fell while the other major indices are closing near unchanged/marginally higher.
German DAX, -1.09%France’s CAC, -0.69%UK’s FTSE 100 +0.12%Spain’s Ibex +0.07%Italy’s FTSE MIB unchanged
Concerns about tariffs caused some indigestion in Germany. The EU is preparing countermeasures against the US if an agreement is not met on August 1.
Pres. Trump has set a 30% tariff on the EU without a deal. Over the weekend, Commerce Sec.Lutnick said that tariffs would likely be subject to a minimum of 10%, but larger trading partners would have tariffs higher. My guess is 20% is where they land.
Although lower, the German DAX is still up 20.76% the year, after rising a similar amount last year. So there can be a correction.
Technically, the price fell below the 50 and 100 hour MAs (black and blue lines near 24,204 to 24246 currently), and moved away. The price also extended below the 200 hour MA (green line) at 23,986 but could not sustain momentum. Getting and staying below that MA is needed to increase the sellers confidence going forward.
This article was written by Greg Michalowski at investinglive.com.