German investors took the agreement in the American debt dispute with caution on Tuesday. After all, the German stock index Dax was able to overcome the 16,000 point mark again after the Whitsun weekend. By Tuesday afternoon, the benchmark index had risen by 0.4 percent to 16,019 points. The price action was marked by caution because not everything is yet in place when it comes to the US debt ceiling.

Markus Frühauf

Editor in business.

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The vote on the compromise between US President Joe Biden and the leading Republican in the US Congress, Kevin McCarthy, will take place on Wednesday. At the same time, some members of parliament are threatening to resist the proposal to suspend the US debt ceiling of 31.4 trillion dollars until 2025. In addition, doubts about the content of the agreement spread among analysts. "The U.S. has found a solution that still involves a huge increase in the national debt and no real spending cuts," said James Rosenberg, a consultant at broker Ord Minnett in Sydney.

Among the individual stocks, attention was focused on a possible alliance in Asia between truck maker Daimler Truck and rival Toyota. Daimler Truck's share price rose by 0.9 percent to 28.77 euros. The shares of the commercial real estate company Aroundtown topped the list of winners in the M-Dax with a price increase of 4.7 percent to 0.92 euros. Although the company felt the effects of declining building values in the first quarter, it was able to reaffirm its full-year targets.

Euro can recover somewhat

The shares of wafer manufacturer Siltronic rose by 3.9 percent. The investment house Jefferies had recommended her as a buy. The fundamentals are solid, and there are early signs of an end to the cyclical downturn in the semiconductor industry, according to Jefferies expert Constantin Hesse.

The election victory of Turkish President Recep Tayyip Erdogan weighed on the national currency, the lira. One dollar cost 20.31 lira, up 1 percent since Friday. The Turkish currency reached a record low against the euro at 22.35 lira. According to foreign exchange expert Ulrich Leuchtmann of Commerzbank, further losses in the lira cannot be ruled out after the election decision. "It was all too obvious that the lira's exchange rates were not market-driven lately, but the Turkish currency was artificially propped up," Leuchtmann said.

In Turkey, capital controls have been introduced, which have supported the exchange rate of the domestic currency in recent months. Leuchtmann sees the risk that the Turkish lira will no longer be artificially supported with the same vehemence as it was before the election. It cannot be ruled out that the devaluation pressure that has accumulated in recent months could be discharged.

The euro has also been under pressure again recently, falling to 1.0673 dollars on Tuesday morning, its lowest level since March. By noon, the common currency had recovered to $1.0730. The weaker economy in Europe has recently depressed the euro.