DAX continues to fall - financial expert warns of geopolitical risks and dwindling hopes of interest rate cuts

DAX continues to fall - financial expert warns of geopolitical risks and dwindling hopes of interest rate cuts

According to a report by www.finanzen.net, the leading German index again recorded a clear downward trend on Tuesday. The DAX traded significantly in the red at the beginning of the day and maintained this negative trend as it progressed, falling by 0.30 percent to 16,571.68 points. Geopolitical risks such as the ongoing Ukraine war, the Middle East conflict and US-China relations continue to impact financial markets. Expectations of interest rate cuts this year are also dwindling as inflation does not appear to be reaching the central banks' target range for the time being. Donald Trump's expected victory in the primary Republican primary has little impact on markets initially, but the upcoming election campaign could have a significant impact on market action later in the year. The balance sheets of other major US banks such as Goldman Sachs and Morgan Stanley were also a topic of discussion. In addition, important economic data on German consumer prices and the ZEW index were published.

Ongoing geopolitical tensions and fading expectations of interest rate cuts could lead to increased volatility in financial markets. This could affect security prices, trading volume and investor sentiment. Uncertainty surrounding global political developments and economic conditions could also cause investors to become more cautious and potentially wait for a market correction. US bank balance sheets and economic data will also have an impact on short-term market developments. Investors should therefore monitor developments closely and adapt their investment strategies accordingly.