The DAX index continued its downward trend on Thursday, remaining below its opening performance throughout the day. The leading index was calculated at approximately 24,065 points by 12:30 PM, reflecting a 0.6 percent drop from the previous day’s closing level. At the top of the stock list were Infineon, Eon, and Beiersdorf, while the companies trading at the bottom were SAP, Fresenius, and Deutsche Bank.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investors’ nervousness is escalating with every trading day, particularly because the situation in the Middle East remains uncertain. He noted that oil prices are once again above the $100 mark, sending strong inflationary signals to financial markets. These impacts are expected to affect general price movements and consumer behavior, though this effect will materialize with a delay.
Lipkow observed that the immediate consequences are hard to estimate, but they are likely to become visible in both macro-economic data and corporate earnings in the coming quarters. He described the ongoing earnings season as generally mixed and marked by many special factors. In this environment, the semiconductor industry currently serves as a safe haven, acting as a refuge for investment funds. However, other sectors demonstrated a mix of indecision and nervousness, a trend epitomized by the heavyweights like SAP, which saw defensive selling ahead of earnings reports.
Furthermore, the analyst pointed out a marked reduction in overall trading volume over the past few days, suggesting that investors are choosing to maintain high levels of liquidity and are waiting for better market conditions. The primary drivers of market volatility remain the unstable geopolitical situation in the Middle East and the ongoing military confrontations between the US and Iran.
On a macro level, the European common currency exhibited slight weakness at midday, with the Euro trading at $1.1685 per dollar. Simultaneously, oil prices rose significantly. By noon, a barrel of Brent crude oil cost $103.70, representing an increase of 1.8 percent compared to the previous day’s close.
