The DAX showed significant gains on Tuesday, closing Xetra trading at 24,996 points. This represented a 1.5 percent increase compared to the previous day’s close. After a strong morning start, the index maintained this level through the afternoon despite minor fluctuations.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that the trading session lacked strong momentum. He stated that current impulses are insufficient to instill confidence or enthusiasm in investors, suggesting that the DAX is likely to remain range-bound until the end of the quarter, with investors only making very selective purchases in individual stocks. According to the analyst, the market did not register enough strength today to hold the DAX above the psychological barrier of 25,000, as investors currently see little reason to push the index past that level.
Lipkow further explained that the published economic data mostly met expectations and, consequently, failed to provide an impetus for buying. He indicated that the German economy appears to be stabilizing at a low level, preserving hopes for a future revival. Therefore, he advises against speculative investments in German equities, as the DAX remains in a stable sideways movement.
On the downside, Lipkow attributed performance pressure to the stock losses of Deutsche Telekom, which faces significant headwinds in the critical US market due to SpaceX. The tech giant has announced plans to enter the mobile market, challenging established carriers. Conversely, the analyst noted that older favorites remain favored over new competitors heading into the end of the quarter.
In the Frankfurt listings just before the close, shares of Siemens Energy, Bayer, and Siemens topped the gainers list, while Deutsche Telekom was the laggard.
Separately, the price of natural gas rose. A megawatt-hour (MWh) of gas for August delivery cost 44 euros, marking a two percent increase from the previous day. If this price level holds, the resulting consumer price would be approximately nine to eleven cents per kilowatt-hour (kWh), including additional costs and taxes.
Meanwhile, oil prices dipped slightly. A barrel of Brent North Sea crude cost $73.08 on Tuesday afternoon, representing a decrease of seven cents, or 0.1 percent, compared to the prior day’s close.
As for currency valuations, the Euro proved marginally weaker on Tuesday afternoon. The Euro traded at $1.1422, while the dollar was obtainable for 0.8755 euros.
