The German stock market benchmark, the DAX, gained traction on Tuesday, closing at 23,846 points. This represents a 0.4% increase compared to the previous day’s closing value. Following a positive opening, the DAX experienced a slight dip mid-morning before recovering ground later in the session.
Market analyst Andreas Lipkow attributed the fluctuating performance to ongoing efforts by investors to interpret the complex interplay of geopolitical and global economic factors. “It’s simply not straightforward to grasp the current market environment” Lipkow stated. He noted that a better-than-expected Purchasing Managers’ Index (PMI) released from China provided a boost to sentiment, although markets remain attentive to further statements from the US administration regarding tariffs and upcoming quarterly earnings reports from US companies.
Infineon shares led the gains on the Frankfurt Stock Exchange throughout most of the trading day, while Commerzbank shares registered as the weakest performers.
Energy markets presented a mixed picture. Natural gas prices rose, with a Megawatt-hour (MWh) for September delivery costing 34 euros. This suggests a consumer price of at least 8 to 10 cents per kilowatt-hour (kWh), inclusive of taxes and levies, if this pricing level proves sustainable. Conversely, crude oil prices declined. A barrel of Brent North Sea crude fetched $68.07 at approximately 5:00 PM German time, a decrease of 69 cents or 1.0% from the previous day’s close.
The euro strengthened slightly against the US dollar, trading at $1.1578, with the dollar exchanging for €0.8637.
