The Dax started Thursday with slight gains. At approximately 9:30 AM, the benchmark index was calculated at around 26,165 points, marking a rise of 0.2 percent from the previous day’s closing level. Deutsche Telekom, Zalando, and Henkel led the price list, while Siemens, Scout24, and Hochtief were listed at the bottom.
Jochen Stanzl, Chief Market Analyst at Consorsbank, noted that given the strong development of an increase of over five percent in just two weeks, the recent Dax rally is a healthy pause. Although quarterly reports demonstrating the resilience of companies against rising energy costs are generally positive, Stanzl pointed out that recurring negative outliers are temporarily weighing on sentiment.
He expressed concern that, unlike the globally-performing Dax, the SDax and MDax might fail to gain momentum, fueling doubts about the sustainability of Germany’s economic recovery. He cited low water levels and anxieties regarding the stability of the Middle East ceasefire as factors straining investor confidence in the German market.
Stanzl also added that the downward turn in oil prices provided hope that Kevin Warsh’s financially conservative statements would remain steadfast, potentially allowing the US central bank to forgo a rate increase in September. Attention is now shifting toward the labor market data expected on Friday. He stressed that the Fed’s dual mandate requires it to monitor both price stability and employment. Consequently, weak job figures could jeopardize the consensus for raising interest rates in September.
In other markets, the European common currency was slightly weaker Thursday morning, trading at 1.1544 US Dollars per Euro. Meanwhile, the price of oil edged up; a barrel of North Sea Brent crude was priced at 79.73 US Dollars around 9 AM Central European Time, an increase of 0.4 percent, or 28 cents, compared to the close of the previous trading day.
