The German stock market benchmark, the DAX, maintained a positive trajectory throughout Tuesday’s trading session, holding comfortably in positive territory by midday. The index was calculated at approximately 23,940 points around 12:30 pm, representing an increase of 0.8 percent compared to the previous day’s closing level. Leading the gains were Infineon, Airbus and Siemens. Conversely, FMC, Commerzbank and Continental experienced the most significant losses during the morning trade.
According to market analyst Andreas Lipkow, the DAX’s performance is currently underpinned by ongoing sector rotation. “Investors are actively shifting their holdings, demonstrating increased investment in cyclical and technology sectors today” Lipkow stated. Bank stocks and those considered defensive titles are witnessing a corresponding sell-off.
Lipkow further clarified that this trend doesn’t signal a fundamental shift in market strategy. “This is more of a consolidation pattern typical during a summer trading period” he noted. Trading activity is currently characterized by narrow price ranges, suggesting a lack of substantial price volatility.
The euro was slightly weaker at lunchtime on Tuesday, trading at $1.1542, with the dollar equivalent to €0.8664.
Meanwhile, oil prices continued their downward trend. Brent crude, a benchmark variety of North Sea oil, was trading at $67.96 per barrel around noon German time, a decrease of 72 cents or 1 percent compared to the previous day’s closing price.
