The DAX saw a slight increase on Thursday. By the close of trading on Xetra, the index was calculated at 26,140 points, representing a gain of 0.1 percent compared to the previous day’s closing level. For the most part, the DAX traded in positive territory throughout the day.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that both domestic and increasingly foreign investors view the German stock market as having significant recovery potential, which helps keep the DAX above the 26,000-point mark. He attributed this sentiment partly to the hope for a constructive resolution to the US-Iran conflict, and also to the corporate balance sheets that have been published recently. Although the reporting season is proving highly varied, Lipkow stated that the generally positive tone has boosted investor appetite. Overall, trading in Frankfurt was relatively subdued, and the selling pressure experienced in July appears to have completely dissipated.
Key focus remained on heavy constituents like Siemens and Deutsche Telekom. The analyst explained that positive impetus for Deutsche Telekom came from its planned share repurchase program. Conversely, Siemens stock had already priced in recent economic optimism ahead of the quarterly results, leading to extensive profit-taking today, as the record order count did little to impress investors. Towards the market close, shares of Deutsche Telekom and Henkel led the ranking on the Frankfurt price list, while Siemens, Rheinmetall, and Scout 24 finished at the bottom.
Meanwhile, the price of gas rose. A megawatt-hour (MWh) of September delivery gas cost 56 Euros, which is six percent higher than the previous day. This suggests that if the price level remains constant, the consumer price would be at least around 10 to 13 cents per kilowatt-hour (kWh), including ancillary costs and taxes.
Oil prices rose sharply as well. On Thursday afternoon, around 5 PM German time, a barrel of North Sea Brent crude cost $81.35 US dollars, marking a 2.4 percent increase from the previous trading day’s close.
The European common currency weakened Thursday afternoon. One Euro cost $1.1522 US dollars, meaning a dollar was available for 0.8679 Euros.
