Overview

• Pre-market indications show the DAX up about 1.1% at 24,297 points following President Trump’s announcement of a 15% reciprocal tariff pact with Japan.
• Investors view the US-Japan agreement as a potential template for resolving EU-US trade talks before the August 1 deadline for threatened 30% duties.
• Profit-taking had pushed the index down to its 50-day moving average on Tuesday but was reversed by the stronger overseas cues from Tokyo and Shanghai.
• SAP’s and Sartorius’s second-quarter earnings reports, starting after today’s close, are expected to introduce fresh volatility to the DAX.
• US equity futures and Asian bourses rallied on the tariff news, and Brent crude rose 0.4% to $68.86 per barrel.