DAX Drifts Lower As Auto Stocks Lose Steam On Tariff Concerns
(RTTNews) - German stocks are down in negative territory Tuesday morning, weighed down by losses in the automobile sector amid uncertainty over potential new tariffs following Donald Trump taking charge as U.S. President.
Trump said he could impose tariffs on Canada and Mexico as early as February 1, although he held off unveiling China-specific tariffs for now.
Several shares from Japanese auto segment fell today and European carmakers are down as well, as Trump revoked the previous administration's executive order on electric vehicles.
Investors await Germany's ZEW economic confidence survey results, due later in the day. The economic sentiment index is expected to fall to 15.2 in January from 15.7 in December.
The benchmark DAX, which dropped to 20,916.93, recovered some lost ground subsequently and was at 20,977.10 a little while ago, down 27.82 points or 0.13% from previous close.
BMW, Mercedes-Benz, Daimler Truck Holding, Porsche and Volkswagen are down 1.3 to 1.7%. Continental is down nearly 1%, and Porsche Automobil is down by about 0.6%.
Shares of energy firm RWE are declining nearly 2%. DHL Group, Commerzbank, Fresenius Medical Care, HeidelbergCement, Bayer and Symrise are moderately lower.
Siemens Healthineers is up nearly 3%. Deutsche Telekom is up 1%, while Siemens Energy, SAP, Rheinmetall, Munich RE and Sartorius are up with modest gains.
The yield on German 10-year government bond is down marginally at 2.511%, while the yield on 30-year bond is lower by 0.018% at 2.739%.
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