The DAX registered a modest start to trading on Thursday morning. Around 9:30 AM, the benchmark index was calculated at approximately 25,090 points, marking a slight increase of 0.2 percent from previous day’s closing levels.
Globally, a rapid correction in the semiconductor sector caused trading to be temporarily halted again in South Korea today-not the first stoppage in this volatile market year. Andreas Lipkow, Chief Market Analyst at CMC Markets, explained that major players such as Samsung Electronics and SK Hynix faced intense selling pressure. Furthermore, Meta’s entry into the AI-cloud business is fueling concerns about shifting demand in the semiconductor industry, which is putting downward pressure on stock prices.
However, Lipkow suggested that the DAX is likely to be minimally affected by these developments, primarily because technology constitutes too small a proportion of the overall market. Only shares of Infineon have attracted considerable attention, with its stock finding itself at the lower end of the quotation list at the start of trading. Given the high valuations across the chip sector, investor sentiment remains noticeably nervous.
Reflecting this atmosphere, investors have once again focused on cyclical industries over the past few days, boosting shares in companies like BASF, BMW, Mercedes-Benz, and Volkswagen. The optimism surrounding a stabilization of the German economy, combined with further drops in energy prices, gives these economy-sensitive sectors a more positive outlook. Though this investment approach has been utilized successfully before, the market is now waiting to see if a genuine economic turning point has been reached.
Looking ahead, Lipkow noted that the focus of today’s trading session is on the ahead-of-schedule US labor market data, as Wall Street remains closed for a holiday tomorrow. Additionally, US industrial orders will draw considerable interest.
In other markets, the European common currency gained some strength early on Thursday; the euro traded at 1.1398 US dollars, while the dollar fetched 0.8773 euros. Gold prices benefited, climbing to $4,062 per fine ounce in the morning (+0.8 percent), translating to €114.58 per gram. Conversely, the oil price saw a significant drop. At 9 AM Central European Time, a barrel of North Sea Brent crude cost $70.45, which represents a decrease of 1.6 percent, or 112 cents, compared to the previous day’s close.
