The DAX advanced on Tuesday, closing at 25,124 points for the Xetra trading session, marking a gain of 0.5 percent compared to the previous day’s close. Although the index started strongly, the DAX saw some of those gains eroded during the afternoon.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that little is moving in the DAX recently. He noted that some investors are still looking toward Wall Street, affected by near-daily index records there, and pointed out that German blue-chip stocks appear relatively inexpensive when compared to U.S. equities. However, another segment of investors has been retreating from the stock market due to concerns over a potential summer downturn, focusing primarily on perennial growth sectors like Artificial Intelligence and semiconductors. Consequently, Infineon’s stock remains popular.
Lipkow added that stocks like SAP, which have suffered from short-term profit-taking, and Bayer, weighed down by the legacy of its Monsanto acquisition, struggled to maintain the top position in the DAX. Looking ahead, investors are awaiting the ruling from the highest court in the U.S. this month, hoping for a potential reprieve. Yet, since this outcome is uncertain, some investors are choosing to divest from the pharmaceutical giant’s stock.
In other financial news, the price of gas declined. A megawatt-hour (MWh) of gas for delivery in July cost 48 euros, representing a 3 percent drop from the day before. If this price level holds, the consumer price would be at least around nine to twelve cents per kilowatt-hour (kWh), including all ancillary costs and taxes.
Oil prices also saw a decrease. At approximately 5 PM Central European Time on Tuesday, one barrel of Brent North Sea crude was priced at 94.72 US dollars, which is 26 cents, or 0.3 percent, less than the close of the previous trading day.
In the foreign exchange market, the Euro was slightly stronger during Tuesday afternoon trading. The euro was valued at 1.1640 US dollars, meaning the dollar traded at 0.8591 euros.
