On Tuesday, the DAX decreased, finishing the Xetra trading day at 24,433 points, representing a decline of 0.7% compared to the previous day’s close.
Among the stocks that performed poorly, Siemens Energy, SAP, and BASF ranked at the bottom of the charts. Conversely, Symrise was the clear winner for the day, capitalizing on a positive industry analyst commentary regarding flavors and fragrances.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that investors on the Frankfurt exchange remain highly selective and tend to maintain a cautious position in the equity market. He stated that while the DAX managed to stay positive for the majority of the trading day, it ultimately succumbed to pressure from Wall Street in the afternoon, leading to a renewed decline.
Looking ahead, Lipkow warned that several significant events are approaching that will be difficult to overcome. Alongside central bank meetings, three mega-IPOs are scheduled to draw liquidity from the markets. Furthermore, the geopolitical situation in the Middle East remains fragile and subject to daily changes. The Iran conflict continues to present itself as a complex and heavily unpredictable geopolitical risk. Consequently, investors are facing a tough choice: whether to concentrate on macroeconomic developments and prevailing trends, or to overweight the risks posed by the war in the Middle East.
Economic indicators also showed mixed signals. ADP data concerning the US labor market indicated a continuous slowdown in the US economy, with only 29,000 new jobs created, although this trend was largely expected. In German data, the balance of trade and production figures suggest a sustained attempt at stabilization despite remaining at a low level. The trade balance fell slightly below expectations, and production growth languished at 0.4%. As a result, defensive sectors were favored in the DAX during this period.
Regarding global markets, the European currency strengthened slightly on Tuesday afternoon, as the euro traded at $1.1547 per dollar, while the dollar fetched 0.8660 euros.
Commodities experienced sharp movements. The price of gold dropped significantly, trading at $4,265 per fine ounce in the afternoon, a decrease of 1.5%. This equated to a price of 118.76 euros per gram. In parallel, the oil price saw a strong slump; the price for a barrel of Brent crude from the North Sea fell to $91.08 around 5 PM German time, representing a loss of 3.4% or 317 cents from the close of the previous trading day.
