Renewed tariff threats by President Trump, this time on all films produced outside the USA, have dampened investor appetite for US stocks", says Axel Rudolph, Senior Technical Analyst at online trading platform IG.
US stock indices drop on second straight day
Whereas most Asian stock indices, including China's, rose on Tuesday despite the country's services growth slowing to a 7-month low, US markets remained on track for their second straight day of falling share prices. The lingering threat of new tariffs being imposed by President Trump led to a rise in the gold price on safe haven flows and an outflow of US stocks into Asian and European indices.
Highly volatile day for the German DAX 40 index
Bargain hunters bought into the German DAX 40 index which dropped close to 2% in early trading as the leader of the centre-right coalition failed to secure the necessary majority in the Bundestag to become chancellor. By the end of the day, the German stock index clawed back practically all of its intraday losses and traded within 1% of its record high as political wrangling resulted in Friedrich Merz being voted in as the country's new chancellor.
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