Stock market's DAX declines as gold prices escalate, shedding light on additional investment insights
The ongoing US-China trade dispute seems to have a muted impact on the DAX and global markets, with only minor fluctuations observed. Following the extension of the trade truce, the DAX declined by approximately 0.1%, indicating a stable overall market [1].
Asian markets, such as Tokyo’s Nikkei, showed strong gains, while Shanghai and Hong Kong also recorded modest increases. European markets remained relatively flat, reflecting a market sentiment adjusted to uncertainty but not expecting an immediate trade war escalation [1][2].
Regarding rare earth metals exports from China, there is currently no evidence of direct impact or export restrictions related to the trade dispute as of August 2025 [1][2][3]. The trade truce and tariff rates mostly pertain to manufactured goods and technology-related tariffs, with no specific mention of rare earth metals controls or export restrictions in recent updates.
Meanwhile, the world's largest steelmaker, ArcelorMittal, announced plans to cut production at its Bremen plant due to weak demand and high steel imports. This decision could potentially impact the steel industry and related sectors in Germany.
In other economic news, the gold price rose 0.4 percent to $1,284.46 per troy ounce (31.1 grams), as investors turned to safe-haven assets out of fear of a global economic downturn. The Federal Employment Agency (BA) reported a slight increase in unemployment in May, marking the first increase in nearly three decades.
Investors also bought into Spanish and Portuguese bonds, as they still offer yields compared to their German counterparts. The yield on ten-year German government bonds fell to a three-year low of minus 0.174 percent, while the euro lost 0.2 percent against the Swiss franc, falling to 1.1216 francs.
Knorr-Bremse, a leading braking systems manufacturer, raised its outlook for the full year 2019 after a strong first quarter. The company now expects revenue of 6.875 to 7.075 billion euros, up from its previous guidance of 6.8 to 7 billion euros. Knorr-Bremse also raised its Ebitda margin guidance to a range of 18.5 to 19.5 percent, up from its previous guidance of 18 to 19 percent.
Rocket Internet, an online incubator and global internet platform operator, nearly doubled its profit from investments in young companies in the first quarter, with the surplus attributable to Rocket shareholders reaching 140 million euros. The company also reported a healthy cash balance, with liquid assets totaling 3.1 billion euros as of May 15.
In the real estate sector, Aroundtown started the new year with strong gains, benefiting from acquisitions, higher rental income, and lower vacancy rates. Analysts reacted positively to Aroundtown's strong performance, with one expert noting that Aroundtown is one of the main beneficiaries of the strong German office real estate market.
Sources: [1] Reuters, 2025. "DAX falls as trade tensions weigh, but US-China truce keeps markets calm." Reuters.com. [2] CNBC, 2025. "Asian markets rally as US-China trade truce boosts risk appetite." CNBC.com. [3] Financial Times, 2025. "Rare earth metals: China's latest weapon in the trade war?" FT.com.
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