DAX Holds Near Highs as Tariff Risks Boost Gold

Global Market Update – Trade War Tensions & Market Reactions

Market Overview

Global markets wavered on Monday as the dollar strengthened following President Donald Trump’s announcement of new 25% tariffs on all steel and aluminum imports. Additional reciprocal tariffs are expected mid-week, raising fears of an escalating trade war. The move is widely seen as inflationary, potentially limiting the Federal Reserve’s ability to cut interest rates further.

China's retaliatory tariffs have already taken effect, while the EU has vowed swift countermeasures, adding to market uncertainty. Investors reacted cautiously, with the Australian dollar and euro weakening. While Wall Street futures initially dropped, they later rebounded.

• Gold surged to record highs above $2,890, fueled by speculation that metals could be the next target of tariffs.
• Oil prices edged higher after recent losses, though global economic growth concerns remain.

Corporate News

Tech Sector: AI Investments Accelerate

• Amazon, Google, Microsoft, and Meta continue their massive AI investment spree, despite investor concerns about overexpenditure. Market watchers are questioning whether these investments will yield long-term gains, particularly with DeepSeek’s rise in the AI landscape.

Retail: China Blacklists PVH Corp

• PVH Corp (PVH -0.21%), owner of Calvin Klein and Tommy Hilfiger, has been blacklisted by China as part of the ongoing trade war. This means PVH could be restricted from selling or manufacturing its products in China, where it currently operates 128 factories.

Tesla: European Sales Slump

• Tesla (NASDAQ: TSLA) saw a 60% decline in new-vehicle registrations in Germany in January, alongside a 63% drop in France. Investor concerns over declining sales have pushed Tesla’s stock down 3.6%, marking a 22.6% drop since its December 18th high.
• The EV maker’s rally post-U.S. election appears to be losing momentum. TSLA receives a C Zen Rating, with investors advised to monitor developments surrounding Elon Musk’s new governmental role.

Crypto: Bitcoin ETFs See Record Inflows

• US spot Bitcoin ETFs saw $5.25 billion in net inflows in January, surpassing December’s total.
• BlackRock and Fidelity led these inflows, reinforcing optimism for another strong year for crypto ETFs in 2025.

Economic Events Today

• 14:00 GMT – ECB President Lagarde Speaks
• Investors will be watching for policy guidance and any indications of the ECB’s stance on inflation and economic growth.

DAX Technical Analysis – 4-Hour Chart

• Current Price: 21,948
• Trend: Bullish, but momentum slowing
• Key Indicators:
• Price above 20 EMA, indicating continued buyer control.
• RSI at 60, signaling bullish but not overbought conditions.
• Stochastic RSI emerging from oversold levels, hinting at a potential short-term rebound.

Key Levels to Watch:

• Resistance: 21,948 (recent high)
• A breakout above this level would signal further bullish momentum.
• Support:
• 21,600 (near 50 EMA) – first key support level.
• 21,079 – a stronger support zone.
• 20,474 – major support if downside momentum accelerates.

The overall trend remains bullish, but a decisive break above resistance or a rejection from current levels will dictate the next market move.