The DAX flipped to the green side after a quiet start, turning around by noon. At about 12:30 p.m. German time, the index stood at roughly 22,725 points, up 0.7 % from the previous trading day. The top three performers were Rheinmetall, Zalando and Commerzbank, while BASF, Heidelberg Materials and Fresenius finished at the bottom of the list.
“Investors are not too confident about the current situation in the Middle East” said Andreas Lipkow, chief market analyst at CMC Markets. “Their thoughts are still split between the fear of missing an easing rally and the worry that another escalation could happen, which keeps the DAX anchored at its present level”.
A central question remains: when and how strongly the rising energy prices will surface in inflation figures. On Monday, Europe’s largest chemical company, BASF, announced that it will likely implement sporadic price hikes because of escalating basic product and raw‑material costs. The chemical sector is very sensitive to inflation developments, making it a useful barometer.
Lipkow also cautioned that it is far from certain whether the DAX has already hit the lows in this correction. Military conflicts are ongoing, and oil prices remain above the $100 per barrel threshold. Should the United States ultimately deploy ground troops to Iran-even after cease‑fire negotiations-the market could face another shake‑up, leaving Europe at a clear disadvantage.
On Tuesday afternoon, the euro was slightly stronger: 1 € was worth 1.1465 USD, while 1 USD corresponded to 0.8722 €.
Meanwhile, crude oil prices jumped sharply. At around 12:00 p.m. German time, a barrel of North Sea Brent crude was trading at 115.20 USD, a 2.2 % increase from the previous day’s close.
