Deutsche Bank now sees the ECB delivering 25 basis point hikes in September and December due to persistent energy-driven inflation risks. The hawkish trajectory could pressure European growth stocks and valuations, including EWG holdings. A cooling of inflation or energy costs could ease the path and support a later rebound in European equities.
RWE, Germany's largest power producer, has alerted the need for strategic gas reserves due to low levels in storage caverns ahead of winter. This development could lead to increased energy prices and affect operational costs for energy companies, including EWG.
Trump announced U.S. tariffs on eight NATO countries' imports. Tariffs start at 10% on February 1, rising to 25% by June 1. Tariffs are linked to the potential purchase of Greenland. Economic strain could affect trade relationships with NATO allies. Market volatility may impact international stocks like VGK.