The German DAX index commenced Tuesday’s trading session with gains, exhibiting a cautious but positive start. Around 9:30 am local time, the benchmark index was calculated at approximately 23,635 points, representing a 0.5% increase compared to the previous day’s closing level.
Leading the gains were Siemens Energy, Porsche Holding and RWE, while Commerzbank, Rheinmetall and Qiagen concluded among the top performers.
Market analysts have noted a lack of sustained upward momentum for the DAX, underscoring a disconnect from positive trends observed on Wall Street. Thomas Altmann of QC Partners commented on the ongoing market fragmentation, suggesting optimism from US markets is not translating to German investor sentiment. He observed that DAX investors have not seen a positive return over the past four and a half months.
According to Altmann, the strength of the Euro is negatively impacting export-oriented businesses, coupled with a lack of confidence surrounding the future economic trajectory of Germany. He further suggested that France’s strained budgetary situation is contributing to international investors exhibiting caution regarding investments within the Eurozone.
The Euro was marginally weaker Tuesday morning, trading at $1.1781, which meant one US Dollar could be purchased for €0.8488.
Meanwhile, crude oil prices experienced a decline. Brent North Sea crude was trading at $66.26 per barrel around 9:00 am local time, a decrease of 31 cents, or 0.5%, compared to the closing price of the previous trading day.
