The DAX saw gains on Thursday, closing the Xetra trading session at 25,118 points, marking a 0.9% increase compared to the previous day’s close. After a positive start, the DAX briefly dipped into negative territory at midday but recovered to its morning levels in the afternoon.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that there was a sense of calm across most trading venues, including the Frankfurt stock exchange floor, regarding the recent escalation in the Near East. He noted that the DAX has once again engaged in the battle for the 25,000 barrier; however, this time, it is expected to act as support from a new all-time high. Lipkow stated that the key drivers in this competition are both geopolitics and the economic situation in the United States and Europe, with the beginning of the earnings season completing this trio of influencing factors.
Investors focused again on perceived long-term contenders in the AI and semiconductor sectors. According to Lipkow, these major players are currently carrying most of the weight for optimistic investors, able to absorb a significant portion of “war anxiety” and concerns. While it is still too early for full reassurances after recent sell-offs, he added that the momentum of the downward trend has lessened.
A hopeful sign for the German economy came on Thursday through the trade balance. Lipkow observed that exports suggest a stabilization, which directly benefits cyclical manufacturers in the automotive, machinery, and chemical sectors. While the negative effects of rising energy prices are currently being offset in the short term, he warned that the question of achieving a sustainable economic recovery in Germany depends, in the medium to long term, on geopolitical developments in the Near East.
In terms of stock performance, Qiagen led the DAX after a price jump, followed by Infineon, Siemens, and Siemens Energy. The laggards included Rheinmetall, Deutsche Börse, and Telekom.
Meanwhile, the price of natural gas increased, with a megawatt-hour (MWh) of August delivery costing 50 euros, a three percent rise from the previous day. If this price level remains constant, this implies a consumer price of at least ten to twelve cents per kilowatt-hour (kWh), including ancillary costs and taxes.
Conversely, the oil price decreased significantly. A barrel of Brent crude in the North Sea cost $77.07 in the afternoon trade around 5 p.m. CEST, which was 1.2% less-or 95 cents-than the prior day’s close.
The European common currency saw some strengthening on Thursday afternoon; the euro cost $1.1430, and a dollar could be purchased for 0.8749 euros.
Gold prices benefited substantially, with a fine ounce trading at $4,129 in the afternoon (+1.3 percent). This corresponded to a price of 116.14 euros per gram.
