The DAX began trading Tuesday with modest gains. At around 9:30 a.m., the leading index was calculated at approximately 24,855 points, representing a 0.1 percent increase over Friday’s closing level. The top-ranked stocks included Infineon, Daimler Truck, and Deutsche Post, while Brenntag, Qiagen, and Siemens Healthineers finished near the bottom of the index.
Thomas Altmann of QC Partners commented on the prevailing uncertainty, noting that analysts are facing the difficult task of pricing in ongoing conflicts. He stated that because no one can predict the extent of the current escalation wave, the market’s valuation remains challenging. While the threat by Iran to block Saudi oil exports through the Red Sea via the Houthi militia has not caused new shocks in oil prices, the prevailing sentiment on the floor is still hopeful for a swift resolution to the current tensions.
Altmann added that the current mantra among investors regarding the DAX is “wait and see.” Many are avoiding taking new positions until it becomes clearer in which direction the German benchmark index will move. This period of extreme uncertainty has rarely been described so accurately in a bull market phase. Furthermore, the reporting season is about to begin in Germany, complicating any economic forecast amidst the Iranian conflict.
In other markets, the European common currency strengthened slightly Tuesday morning. The Euro traded at $1.1423 per US Dollar, meaning a Dollar was worth 0.8754 Euros. Oil prices, however, remained stagnant. At approximately 9 a.m. German time, a barrel of Brent crude from the North Sea was priced at $89.20, a marginal decrease of 2 cents, or 0.0 percent, compared to the previous day’s close.
