DAX on course for recovery: Fed cuts interest rates, Trump announces tariff agreement!

DAX on course for recovery: Fed cuts interest rates, Trump announces tariff agreement!

What is happening on the financial markets? Today, October 30, 2025, the main focus is on the Federal Reserve's interest rate cuts, the agreement in the customs dispute between the USA and China and the European Central Bank's (ECB) interest rate decision. Investors are cautious about these issues. Loud daily news The German leading index DAX is estimated to be 0.3 percent higher at 24,196 points before today's Xetra launch, after losing 0.6 percent to 24,124 points the day before.

Analyst Timo Emden from Emden Research speaks of a market situation characterized by uncertainty. The Fed has cut the key interest rate by 0.25 percent, but the future of this monetary policy remains questionable. Market participants are hesitant because there are doubts as to whether there will be further easing in December. In addition, the ECB's interest rate decision is expected today, with experts assuming the key interest rate will remain unchanged at 2.0 percent. Since the summer of 2024, the ECB has already reduced interest rates eight times by a total of two percentage points.

Developments in the trade dispute

Another important factor in the markets is the trade dispute between the USA and China, which has recently come into greater focus. On May 11, 2025, an agreement between the two countries was announced Capital check reported. A key point of the agreement is the temporary reduction in tariffs for 90 days, starting on May 14, 2025. This will ease a tariff rate of up to 145 percent on Chinese imports and 125 percent on US goods - a move that is seen as a stimulus for markets.

The positive reactions are particularly evident in technology stocks, and trading sentiment could improve overall. This agreement signals a willingness to compromise and could help reduce the US trade deficit. Experts hope for long-term positive effects on global trade.

Stock market outlook and company figures

While the markets react inconsistently - the Dow Jones loses 0.2 percent to 47,632 points, while the Nasdaq rises by 0.6 percent to 23,958 points - the Japanese stock market is also on the rise. The Nikkei index rose by 0.5 percent and now stands at 51,561 points.

On the corporate side, Lufthansa is causing mixed feelings. Despite a 3 percent increase in passengers in the third quarter, the company reported a 1 percent decline in adjusted operating profit to 1.3 billion euros. The situation is different for other large companies: Meta suffers a dramatic drop in profits of 83 percent to $2.71 billion, which is due to a significant write-down of $16 billion. In contrast, Microsoft can point to an 18 percent increase in sales to $77.7 billion and a 12 percent increase in profits to almost $28 billion.

Samsung, on the other hand, celebrated an operating profit of 12.2 trillion won (approx. 7.3 billion euros) - an increase of 33 percent. This success comes primarily from robust chip sales, while automaker Hyundai is suffering from US tariffs. The operating profit here fell by 29 percent to 2.5 trillion won (1.5 billion euros), and the tariffs cost Hyundai 1.8 trillion won in the last quarter, while the tariff rate reduction from 25 percent to 15 percent has already been announced.

In summary, the situation on the markets is currently characterized by uncertainty. Developments surrounding interest rate policy and trade disputes will continue to be closely monitored. The markets' reactions to company figures are also likely to cause movement in the coming days. The challenge for investors will be to make the right decisions in a complex international environment characterized by geopolitical tensions as well as economic easing.