The DAX saw gains on Thursday, closing Xetra trading at 24,154 points, representing a plus of 0.4 percent compared to the previous day’s close. After a subdued start, the index managed to build up gains until the early afternoon, though much of this was later lost.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that investors in Frankfurt were left somewhat disappointed having to watch the new record highs established in New York and Tokyo. He noted that positive momentum did not fully translate to the DAX, attributing this to concerns that persistently high crude oil prices might negatively impact Germany’s economic situation.
Although the ongoing earnings season has revealed many positive results in retrospect, Lipkow also pointed out warning signs. For instance, high energy prices are already having an effect in the consumer sector. He added that the stock market remains stable as long as there are no negative reports from the Middle East. However, the future trajectory of the inflation rate-driven by sharply increased oil prices-and the negotiation status between the US and Iran remain unpredictable risks for many investors.
Leading the top performers in the Frankfurt stock listing towards the end of the session were shares in Brenntag, Scout 24, Zalando, and SAP. Qiagen and Merck finished near the bottom of the index list.
Meanwhile, natural gas prices rose. A megawatt-hour (MWh) of gas for delivery in May cost 42 euros, which is a three percent increase from the previous day. If this price level remains permanent, it implies a consumer price of at least around nine to eleven cents per kilowatt-hour (kWh), including ancillary costs and taxes.
Oil prices also increased. A barrel of North Sea Brent crude cost $97.96 on Thursday afternoon around 5 PM German time, an increase of 3.2 percent compared to the close on the prior trading day.
The European common currency was slightly weaker on Thursday afternoon: the euro cost $1.1776, meaning the dollar was available for 0.8492 euros.
