The DAX index opened marginally unchanged Tuesday morning, trading around 23,720 points – a slight 0.1 percent decrease from the previous day’s closing level. Market analysts have noted a lack of clear direction for the index, observing a persistent sideways trend.
While optimism surrounding Artificial Intelligence continues to drive growth and overshadow inflation concerns in the United States, the DAX has received support from potential within the defense sector, notably driven by the Rheinmetall share reaching a significant milestone. Currency markets also exerted influence, with the Euro maintaining a relatively stable value against the US dollar after experiencing a decline over the past week and a half.
Attention in the US is primarily focused on the ongoing possibility of a government shutdown. Despite historical trends of last-minute resolutions, the potential for disruption remains a source of uncertainty, particularly given precedents from a previous administration, which saw the longest government shutdown in US history. A failure to reach an agreement could also delay the release of crucial labor market data, potentially impacting expectations for an interest rate reduction by the US Federal Reserve in October. Consequently, short-term volatility is anticipated within US indices.
Safe-haven assets are seeing increased demand. Gold prices are exhibiting a sustained upward trajectory, approaching the $4,000 per ounce mark. Analysts attribute this surge to the mounting geopolitical and economic uncertainties, with the potential US government shutdown only the latest catalyst for investor interest. Gold was trading at $3,855 per fine ounce, representing a 0.6 percent increase and a price of €105.52 per gram.
Conversely, oil prices have experienced a decline. Brent crude traded at $67.53 per barrel, reflecting a decrease of 44 cents or 0.7 percent compared to the previous day’s close.
The Euro strengthened slightly to $1.1745, with a US dollar now worth €0.8514.
