The DAX began trading on Thursday morning at a specific level. Around 9:30 AM, the benchmark index was calculated at approximately 25,010 points, marking a 0.5 percent increase from the previous day’s closing level.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, the start of trading in Frankfurt was influenced by three main factors: the session minutes released by the US central bank the previous evening, the situation in the Middle East, and the price movements of semiconductor stocks in Asia.
On the monetary policy front in the United States, a struggle between two camps is becoming clear. This conflict, which Kevin Warsh has described as a “family dispute,” shows significant disagreement within the body. What is certain is that the Fed continues to monitor inflation closely, and future price increases could swiftly trigger interest rate hikes.
Regarding the Middle East, several military operations and US attacks took place in Iran last night. Negotiations between the two parties have officially concluded, and the conflict is entering a new phase. However, investors might not be overly shocked by this development this time, as much of it had already been anticipated. Consequently, the hedging ratio was relatively high. Despite this, the further evolution of oil prices is expected to impact the stock market and create uncertainty.
In Asia, semiconductor stocks continued to show a general downward trend, but the massive selling pressure has temporarily subsided. Selective buyers have already entered the market for individual stocks, such as SK Hynix. While technology-heavy stock markets consolidated, the Nikkei index managed to close slightly in positive territory.
Lipkow noted that this mixed market condition is likely to persist for investors in the coming weeks, being given different weights depending on data and news. Specifically, investors should pay attention to the US labor market data later in the day and the statements made by individual central bankers. Additionally, the German trade balance balance could warrant attention.
In currency markets, the European community currency strengthened slightly on Thursday morning: the Euro was priced at $1.1438, and the dollar was available for 0.8743 Euros.
The price of gold benefited, rising to $4,107 per troy ounce in the morning (+0.7 percent), equating to €115.43 per gram. Meanwhile, the oil price saw a slight increase. Brent North Sea crude oil cost $78.08 per barrel around 9 AM German time on Thursday, which represents a rise of 6 cents or 0.1 percent compared to the previous day’s close.
