The German DAX index began trading higher on Tuesday. At around 9:30 a.m., the major index was calculated at approximately 24,475 points, representing a gain of 0.7 percent compared to the previous day’s closing level. Rheinmetall led the stock performance, followed by SAP and Scout24. At the tail end of the index list were Infineon, Daimler Truck, and BASF.
Commenting on the market, Thomas Altmann of QC Partners noted, “It remains a volatile up-and-down swing. The exchanges continue to fluctuate in rhythm with the news coming out of Washington and Tehran”. He assessed the absence of a new military escalation today as a clear positive development, mentioning Donald Trump’s emphasis on the crucial need for ongoing negotiations. Altmann added that speculating whether actual rapprochement exists between the US and Iran behind the scenes is difficult, and as long as much remains unclear, volatility in all asset classes is expected to persist.
Altmann also pointed out that the DAX utilized the fresh optimism to recover both the psychologically significant 24,000 mark and the 200-day moving average. However, he cautioned that it is currently difficult for the DAX to set its own agenda, stating, “The news from Washington and Tehran dominates everything. The DAX cannot escape this market rhythm”.
A separate concern highlighted by the analyst involves interest rates. He pointed out that while slight easing was noticeable yesterday, the yield on ten-year German government bonds had climbed to a new 15-year high. This situation presents a developing risk that could potentially affect both corporate balance sheets and government budgets.
Meanwhile, the European common currency started the Tuesday morning weaker against the dollar. The euro traded at 1.1630 US dollars, while the dollar was priced at 0.8598 euros. Additionally, oil prices declined. The Brent crude oil grade of the North Sea cost $110.40 per barrel around 9 a.m. German time-a decrease of 173 cents, or 1.5 percent, compared to the previous day’s close.
