FX.co ★ DAX Ends on Negative Note

The DAX index in Frankfurt narrowed its initial declines to finish approximately 0.4% lower at 24,165.7 on Monday. This movement followed President Donald Trump's announcement of a 30% tariff imposition on EU goods, scheduled for implementation on August 1. Despite this, investor sentiment remained cautiously optimistic, anticipating that these tariffs could be mitigated through ongoing trade negotiations. In an effort to forestall the tariffs, EU ministers convened today and resolved to initiate talks with Washington as a priority. Maroš Šefcovic, the European Union's chief trade negotiator, confirmed that talks are underway and voiced optimism, suggesting both parties are working towards a favorable resolution. Several industry sectors experienced pressure, particularly retail, automotive, pharmaceuticals, and semiconductor companies. Zalando's shares underperformed, falling over 5%, following Morgan Stanley's reduction of its price target from €28.50 to €25.50. This downgrade accompanied warnings about increased competition due to TikTok Shop's expansion across Europe. Additionally, Brenntag shares decreased by 2.7% after the company lowered its financial guidance, while BASF's stock declined by 1.2% due to a profit warning linked to US tariffs and a slowdown in global economic growth.