The benchmark Dax index saw an increase on Tuesday afternoon, after a relatively slow start to the trading day. Around 12:30 PM, the index was calculated at approximately 23,225 points, representing a 0.2 percent gain compared to the previous day’s closing level. The top-performing stocks were BASF, FMC, and Brenntag, while Heidelberg Materials, Rheinmetall, and Qiagen finished among the leaders.
Market analysts pointed to the situation regarding the Iran conflict as the key focus for investors. Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that the market sentiment had slightly improved following rumors of an extended ultimatum, negotiations involving five friendly nations, and the involvement of eight intelligence agencies. He stated that investors are now anticipating at least a medium-term ceasefire in the Middle East.
Lipkow added that European purchasing managers’ indices currently reflect ongoing uncertainty and higher energy costs, with most data points coming in slightly below expectations. The purchasing manager index for Italy, for instance, has dropped below the 50 mark. However, the market analyst suggested that macroeconomic data are currently of secondary importance, treating the shifts and developments surrounding the Iran conflict as the primary driver.
Investors are currently showing interest in cyclical companies, particularly due to stable crude oil prices, which are influenced by potential de-escalation in the Strait of Hormuz. Furthermore, US stock indices are showing slight pre-market gains, suggesting a firmer opening in New York.
In other market updates, the Euro strengthened slightly during the afternoon trading session, trading at $1.1548 per dollar. Consequently, the dollar was available for 0.8660 Euros. Oil prices decreased; at around noon German time, a barrel of North Sea Brent crude oil cost $109.20, marking a decline of $0.50, or 0.5 percent, compared to the previous day’s close.
