LSEG's latest forecasts show slight improvement for European businesses despite ongoing global trade uncertainty. The data suggests EU companies may see just a 0.3% profit drop in the second quarter. Earlier, analysts expected a 0.7% decline.
LSEG's latest forecasts show slight improvement for European businesses despite ongoing global trade uncertainty. The data suggests EU companies may see just a 0.3% profit drop in the second quarter. Earlier, analysts expected a 0.7% decline.
European stock indices, including Germany's DAX, closed lower on Tuesday amid fears of escalating trade tensions between the US and EU. Investors continue monitoring negotiations between Washington and Brussels.
Since the beginning of 2025, the euro has appreciated against the dollar by almost 13%. At the same time, the Bloomberg Dollar Index has fallen by 9% from the peak reached in January. Now, it is at its lowest level in more than three years.
Germany's benchmark DAX index closed lower on Monday, mirroring a broader decline across European markets. The drop followed the US administration's announcement of 30% tariffs on imports from eurozone countries, with the automotive sector being particularly affected.
As noted by Reuters columnist Mike Dolan, we can now expect a significant rebalancing of US investment portfolios toward foreign stocks. The key catalyst for this, in his view, is a 10% weakening of the dollar against major currencies in the first half of 2025.
American and European stocks went lower on Monday amid new announcements by US President Donald Trump on trade tariffs. On Saturday, he stated his intention to impose 30% duties on most imports from the EU and Mexico starting August 1.
Uncertainty in trade relations between the United States and the European Union has negatively impacted the financial outlook of European companies. According to LSEG I/B/E/S data, average Q2 profit expectations have been revised downward to -0.2% year-on-year.
US President Donald Trump announced higher tariff rates for 14 trading partners effective August 1. However, global markets’ reaction to these changes was muted. European stocks rose in the trading session after Trump’s comments.
On Monday, the pan-European STOXX 600 index rose 0.4%, strengthening its position after a weekly decline on Friday. Germany's DAX increased by 1.2%. Technology stocks were among the leaders of growth.
According to Reuters, global stock markets saw significant capital inflows during the week ending July 2. The gains were driven by record-breaking performances in US equities and increased investor interest in artificial intelligence (AI) sectors.
The DAX (Deutscher Aktienindex) Index is the main stock market indicator of Germany, which reflects the performance of the largest companies of the country. It represents 40 leading German corporations listed on the Frankfurt Stock Exchange. The financial instrument is considered to be a key gauge of the economic health in the Federal Republic of Germany and the Eurozone.
Major factors that determine the value of DAX:
A rise in the DAX indicates that investors are optimistic and confident, while a fall could be a warning sign of a potential recession or crisis.
This index is used for both long-term investing and short-term trading. To forecast its dynamics accurately, it is important to take into account macroeconomic statistics, corporate reporting, and global market trends.
