The Dax index opened Wednesday’s trading session with a positive trend, gaining momentum early in the morning. Around 9:30 AM, the leading index was calculated at approximately 23,975 points, representing a 0.6 percent increase compared to the previous day’s closing level. Vonovia, Heidelberg Materials and Zalando were among the top performers, while Beiersdorf, Bayer and FMC lagged at the bottom of the rankings.
According to Jochen Stanzl, Chief Market Analyst at CMC Markets, “The best medicine against tariff anxiety is strong quarterly results”. He noted that investors received three such boosts Wednesday: Vonovia signaling a potential turnaround in the real estate market, Siemens Energy reinstating dividend payments and a robust performance at Commerzbank prompting an upward revision of its forecasts.
For weeks, investors believed that tariffs would not significantly impact economic data or quarterly reports. While this perception was recently challenged by some companies issuing profit and revenue warnings and major corporations reporting billions in tariff-related losses, the overall picture remains nuanced. “The costs associated with tariffs often manifest as one-time expenses, impacting margins rather than fundamentally reversing underlying growth trends” explained Stanzl.
He further elaborated that these tariffs appear to be viewed by investors as isolated events, allowing them to refocus on future performance. Positive outlooks from various companies are driving purchase decisions, leading the Dax to reclaim the 24,000-point level – the point from which a significant sell-off began last Friday.
The euro experienced a slight weakening Wednesday morning, trading at $1.1572, with the dollar fetching €0.8642.
Meanwhile, oil prices retreated, with a barrel of Brent North Sea crude costing $68.07 around 9:00 AM German time, a 69-cent or 1.0 percent decrease from the previous day’s closing price.
