The DAX saw a significant decline on Thursday, closing the Xetra trading session at 24,763 points, marking a 1.6 percent decrease compared to the previous day’s close. After a weak start to the session, the index extended its losses throughout the afternoon.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that the European Central Bank’s decision to hold interest rates unchanged in the Eurozone was taken by the DAX with little notice, as expected. However, the European semiconductor group STMicro failed to meet market expectations, creating selling pressure across the entire semiconductor sector.
The market sentiment remained overcast due to the escalating conflict in the Middle East, exacerbated by high crude oil prices which are particularly challenging for German companies reliant on raw materials and energy. Lipkow also pointed out that the quarterly reports released by US companies Comcast and Honeywell partially impacted European counterparts.
Specific company figures, including those from Traton, Deutsche Börse, Nestlé, Roche, and Givaudan, were overshadowed by anxieties surrounding potential second-round effects stemming from rising energy costs. In the wake of STMicro’s news, Infineon shares hit the bottom of the DAX, while Daimler Truck recorded a strong gain, benefiting from positive comments issued by its competitor, Traton. Towards the close, Daimler Truck, Qiagen, and Merck were leading the climb, while Infineon and Commerzbank finished at the bottom.
Turning to commodities and foreign exchange, the oil price spiked. Brent crude oil reached $100.80 per barrel late Thursday afternoon, representing a 7.1 percent increase from the previous day’s closing price. The European common currency weakened; the Euro traded at $1.1375, meaning the dollar was valued at 0.8791 euros. Meanwhile, the price of gold sharply fell, dropping 2.0 percent and reaching $4,051 per fine ounce in the afternoon, equivalent to €114.51 per gram.
