The DAX index experienced a slight increase on Wednesday, closing at 24,262 points – a gain of 0.2 percent compared to the previous day’s close. Following an initial weak start, the index shifted into positive territory during the morning session, maintaining a stable level above the previous day’s figures throughout the afternoon.
Market analyst Andreas Lipkow attributed the market’s movement to recently released US economic data. “The US jobs market figures and the US GDP both indicate a very robust and well-functioning economy in the United States” Lipkow commented. “Open positions reached 144,000, significantly surpassing the anticipated 107,000 and the US Gross Domestic Product stands at 3.00 percent, also well above expectations. There’s no indication of a slowdown”. He further explained that the strong data has dampened hopes for imminent interest rate cuts in the US. “In such an economic environment, interest rate measures are unnecessary; they would only serve to overheat the economic engine and further exacerbate inflationary risks.
Throughout the trading day, shares of Porsche, Siemens Energy and Commerzbank led the gains on the Frankfurt Stock Exchange. Conversely, Adidas, Symrise and Mercedes Benz found themselves at the bottom of the rankings. Adidas reported a substantial increase in both revenue and profit for the second quarter of the year. However, the company is hesitant to revise its profit forecast due to ongoing tariff risks.
Natural gas prices also saw an increase, with a megawatt-hour (MWh) delivery for August reaching 35 euros, representing a 1 percent increase from the previous day. This suggests a consumer price of at least eight to ten cents per kilowatt-hour (kWh) including ancillary costs and taxes, should this price level persist.
The price of Brent crude oil also rose, reaching $72.96 per barrel in the mid-afternoon, up 45 cents or 0.6 percent from the end of the previous trading day.
The European currency weakened during Wednesday afternoon trading, with one euro costing $1.1482 and one dollar fetching $0.8709.
