The DAX index opened Thursday’s trading session with gains, marking a positive start to the day. By 9:30 AM local time, the benchmark index was calculated at approximately 23,625 points, representing a rise of 1.1 percent above the previous day’s closing level.
Leading the gains within the DAX were Siemens Energy, Sartorius and SAP, while Continental, BASF and Beiersdorf experienced downward pressure. The performance of Continental is notably impacted by the recent spin-off of its automotive division, now operating as Aumovio and listed independently on the Frankfurt Stock Exchange. Aumovio’s inclusion is temporary, lasting for a single trading day.
“The DAX is benefiting from a reversal in the currency market following the Federal Reserve meeting” stated Jochen Stanzl, Chief Market Analyst at CMC Markets. “Jerome Powell’s remarks at yesterday’s press conference were considerably more restrictive than initially suggested by the press release. His approach prioritizes data-dependent decision-making from meeting to meeting”. This stance has dampened the optimism of Euro proponents, who had anticipated a series of interest rate cuts in the United States. “The Euro is weakening and investors are returning to German equities. Their pain point is likely around the $1.19 level” Stanzl added.
“As a consequence, the August low has not been convincingly breached in the DAX” the market expert continued. “Highly optimistic investors might interpret this as a false signal on the seller’s side, a ‘bear trap'”. However, no short-term signals indicating a market bottom have emerged.
The Euro was trading slightly stronger Thursday morning, fetching $1.1819, with a dollar equivalent to 0.8461 Euros.
Meanwhile, oil prices experienced a decline; a barrel of Brent crude was priced at $67.68 around 9:00 AM local time, a drop of 27 cents or 0.4 percent compared to the previous trading day’s close.
