FX.co ★ DAX Slips from Highs as Trade Deal Optimism Wanes

On Monday afternoon, the DAX 40 index in Frankfurt trimmed its earlier gains to stabilize around 24,170 points, retreating from a 0.9% increase earlier in the day. This change came as the initial enthusiasm surrounding the US-EU trade deal started to wane. The agreement stipulates a 15% base tariff on most EU exports to the US, including automotive, semiconductor, and pharmaceutical goods, while the EU committed to a $750 billion purchase of US energy and military equipment. Although numerous European leaders appreciated the clarity offered by the deal, there are persistent concerns regarding its compatibility with President Trump's "America First" policy, and several details remain unresolved. Sector performance was varied, with auto stocks reversing gains and slipping into negative territory. BMW declined by 2.9%, followed closely by Volkswagen at -2.8%, Porsche at -2.2%, and Mercedes-Benz at -1.8%. Conversely, the pharmaceutical and technology sectors fared better, with Sartorius rising by 1% amid waning tariff worries and Infineon climbing by 2%, buoyed by positive sentiment in the chip sector and news of a significant order from Tesla to Samsung.