On Tuesday morning, German stocks experienced a downturn, primarily driven by declines in the automobile sector. This downturn is attributed to uncertainties surrounding potential new tariffs following Donald Trump's assumption of the U.S. presidency. Trump has indicated he may impose tariffs on Canada and Mexico as early as February 1, although he has postponed the announcement of tariffs specifically targeting China.
Shares in the Japanese automotive sector have also seen declines, with their European counterparts following suit, sparked by Trump's decision to revoke the previous administration's executive order on electric vehicles.
Investors are keenly awaiting the results of Germany's ZEW economic confidence survey, set to be released later in the day. The survey is anticipated to show a decrease in the economic sentiment index to 15.2 for January, down from 15.7 in December.
The benchmark DAX index, which fell to 20,916.93 earlier, has regained some of its losses and stood at 20,977.10, marking a decline of 27.82 points or 0.13% from the previous close.
Prominent automakers such as BMW, Mercedes-Benz, Daimler Truck Holding, Porsche, and Volkswagen have seen their shares drop between 1.3% and 1.7%. Continental's shares are down nearly 1%, while Porsche Automobil has decreased by approximately 0.6%.
Energy company RWE's shares are down about 2%. Meanwhile, DHL Group, Commerzbank, Fresenius Medical Care, HeidelbergCement, Bayer, and Symrise have experienced moderate declines.
Conversely, Siemens Healthineers has seen an increase of nearly 3%. Deutsche Telekom is up by 1%, with Siemens Energy, SAP, Rheinmetall, Munich RE, and Sartorius posting modest gains.
In the bond market, the yield on the German 10-year government bond has slightly declined to 2.511%, while the 30-year bond yield is down by 0.018% to 2.739%.
