The Dax began trading on Tuesday with losses. Shortly after 9:30 AM, the index stood at 24,164 points on the Frankfurt exchange floor, representing a decline of 0.8% from Monday afternoon’s close. The strongest performing stocks included Bayer, Deutsche Börse, and GEA, while the weakest were Infineon, Zalando, and Münchener Rück.
Commenting on the market, Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that the arguments supporting optimistic views in the stock market are diminishing. According to Lipkow, energy prices remain elevated, the semiconductor rally appears to be entering a highly mature phase, and fresh data from the US could confirm persistent inflation concerns among investors. This sentiment was visible in Asia, where the market showed tendencies toward profit-taking. The analyst specified that investors significantly reduced positions in previously well-performing semiconductor stocks.
In Frankfurt, attention was focused on the quarterly earnings reports of Munich Re and Bayer. While Lipkow stated that Bayer’s results were generally received positively, the ongoing issue surrounding glyphosate continues to loom over the company. Furthermore, the reinsurance firm reported figures that were slightly below analyst expectations.
The market analyst advised that the day’s trading activity will be heavily influenced by the ZEW Index, but more critically, by the US consumer price indices due to be released later in the day. He observed that as the seasonal quarterly reporting period wanes, macro-economic fundamentals are once again taking center stage.
On currency front, the European common currency was weaker on Tuesday morning. The exchange rate stood at 1 Euro buying 1.1749 US Dollars, meaning 1 US Dollar converted to 0.8511 Euros. Meanwhile, oil prices saw a significant increase; the Brent North Sea crude oil was priced at $106.50 per barrel at 9 AM Central European Time, marking a 2.1% rise compared to the previous day’s closing price.
