News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • RT @BrendanFaganFx: 77 counterparties take $1.352 trillion at Fed's fixed-rate reverse repo $USD $DXY
  • EUR/USD attempts to halt a five day decline as the Federal Reserve sticks to the sidelines. Get your market update from @DavidJSong here:
  • US Markit Composite PMI for September fell to 54.5 from 55.4, whereby the services and manufacturing figures fell to 54.4 and 60.5 respectively, both missing analyst estimates. Get your market update from @JMcQueenFX here:
  • S&P 500, Nasdaq Rally After the Fed; 10 Year Yield to Two-Month-Highs
  • #Bitcoin Outlook: $BTCUSD Bounce From 40K, Fake-out or Shake-out? -
  • While JPY gets clobbered, CHF decides to turn a blind eye to yields $CHF
  • The surprise 100 basis point cut from the Turkish central bank (to 18%) generated the expected pressure for $USDTRY. That said, I don't think it was the market that decided the momentum should die out at 8.8000 again...
  • surprised that $NQ is holding up so well with what rates are doing. 10 year yield at a 2 month high, $Nasdaq still holding resistance at prior support
  • The S&P 500 has recovered all the ground it lost at the start of the week and the Dollar has slumped post FOMC and PMIs. DailyFX's @JohnKicklighter gives a brief overview of the market for Thursday!
DAX Outlook: Auto Tariff Threat Puts EU-US Trade War Back in Focus

DAX Outlook: Auto Tariff Threat Puts EU-US Trade War Back in Focus

Justin McQueen, Strategist

DAX Analysis and News

  • DAX Dives as Trump Reportedly Mulls Auto Tariffs
  • Stakes are Raised for a Successful G20 Summit
  • EU Rebuts Initial Reports

DAX Dives as Trump Reportedly Mulls Auto Tariffs

The auto heavy DAX index briefly fell to session lows to break below 11300 and underperform its major counterparts after reports from German press that President Trump may impose auto tariffs at a rate of 25% as early as next week (after the G20 summit). As a reminder, auto names Daimler, Volkswagen and BMW, comprise of roughly 11% of the DAX index.

Stakes are Raised for a Successful G20 Summit

With these rather timely reports surfacing just ahead of the G20 summit, this subsequently raises the bar for Malmstrom and Juncker to ease tensions at the summit and avoid an escalation of trade wars between the US and EU. If, however, talks fail, this raises the likelihood that the Trump administration will look to place auto tariffs on the EU, which in turn increases the downside risks to an already challenging market for the Eurozone. Particularly in Germany, where the last quarter saw the first contraction in growth since 2015.

EU Rebuts Initial Reports

Following the reports from German press a spokesman has now rebutted these reports, stating that Malmstrom is not scheduled to meet Lighthizer. However, despite this, markets will likely keep a close lookout for any fall out regarding EU-US tensions.

Background of trade wars

  • Impact of Trade Wars, click here

DAX Price Chart: 1-Minute Time Frame (Intraday)

DAX Outlook: Auto Tariff Threat Puts EU-US Trade War Back in Focus

Chart by IG

IG Client Sentiment shows that 63.1% of traders are net-long with the ratio of traders long to short at 1.71 to 1. The combination of current sentiment and recent changes gives us a further mixed trading bias for the DAX.

How to Trade the DAX

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.