The DAX continued its upward trend on Tuesday afternoon after a positive start to the trading day. Around 12:30 PM, the leading index was measured at approximately 23,960 points, representing a gain of 0.9 percent compared to the previous day’s closing level. Among the top performers in the index were Siemens, Scout24, and Mercedes-Benz, while Deutsche Telekom, Rheinmetall, and Hannover Rück finished in the top ranks.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investors are hoping for a swift resolution to the conflict in Iran, following the principle that “no news is good news”. While this optimistic sentiment has not yet been reflected in energy prices, it is providing a degree of positive momentum to European stock markets.
Lipkow added that the current earnings season is proving to be complicated. He noted that the quarterly figures from many companies have failed to meet analyst expectations, creating uncertainty in certain sectors. Following the impact of Goldman Sachs’ figures on banks yesterday, the latest results from luxury group LVMH are also expected to disappoint, as the French conglomerate seems to be feeling the pinch of consumer reluctance in its fashion retail segment. In contrast, BMW, the German automotive group, is being supported by its earnings report. Although the automaker reported a decline in sales in China, it managed to achieve some growth back in Germany.
The analyst concluded that investors remain cautiously reserved for now but see potential for a quick improvement in the situation. He mentioned that with the upcoming quarterly results taking center stage, they might help fill the information void surrounding developments in the Middle East.
In currency markets, the Euro strengthened on Tuesday afternoon, exchanging at $1.1795 per US dollar. Conversely, the dollar exchanged for approximately 0.8478 Euros. Oil prices declined, with a barrel of Brent crude oil priced at $98.53 around noon German time, which was 83 cents-or 0.8 percent-less than the previous day’s close.
