FX.co ★ DAX Declines as Investors Weigh ECB Warnings

On Thursday, the DAX index declined by 1.2%, closing at 23,013, as investors evaluated the recent statements by ECB President Christine Lagarde and recent decisions taken by central banks. Lagarde cautioned that the U.S.'s proposed 25% tariff on European imports could reduce eurozone growth by 0.3 percentage points in the first year, with potential retaliatory tariffs exacerbating the impact to 0.5 points. She minimized concerns about inflationary pressures, indicating that the ECB would refrain from raising rates in response. Concurrently, the U.S. Federal Reserve maintained steady interest rates on Wednesday, although it reiterated expectations for two rate cuts within the year despite ongoing uncertainties related to President Trump's trade policies. In corporate news, shares of RWE fell by 3.5% following the company's announcement of plans to reduce investments by over 20% by 2030 due to uncertainties in the returns from renewable energy. Other significant decliners included automobile manufacturers Mercedes-Benz, BMW, Porsche, and Volkswagen, with share price reductions ranging from 2.4% to 4.2%.