The DAX remained in negative territory on Tuesday afternoon, continuing a weak trend that started early in the day. Around 12:30 PM, the benchmark index was calculated at approximately 24,980 points, which was 0.5% below the previous day’s closing level. Top performers on the index included Brenntag, BASF, and Mercedes-Benz, while the weakest stocks were Scout24, Qiagen, and Continental.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that the Frankfurt DAX continues to struggle near the 25,000 mark. He stated that the relative strength seen in the previous session was unlikely to continue. Although better-than-expected trading figures from China provided an initial boost of optimism, this was quickly undermined by surging energy prices later on. Investors are currently once again concerned about escalating inflation dynamics and are turning their focus toward upcoming price data from the United States.
Lipkow also highlighted the impact of the beginning earnings season, which is already casting a shadow over the morning trading. He pointed out that in the current low-volume environment, even minor negative surprises can trigger significant price disruptions, leading to noticeable nervousness, though not excessive. Despite this volatility, many investors remained on the sidelines. Furthermore, the semiconductor stocks, which have been major drivers in recent weeks, are currently failing to provide any support.
In external markets, the Euro strengthened slightly during the midpoint of the day, trading at $1.1396 per dollar. Conversely, the price of crude oil rose sharply. Around noon German time, a barrel of Brent crude from the North Sea was priced at $87.22, marking a 4.7% increase from the prior day’s close.
