The DAX began the trading day on Tuesday with gains. By 9:30 AM, the leading index was calculated at approximately 26,180 points, marking a 0.3 percent increase over the previous day’s closing level. Top performers included Infineon, Siemens Energy, and Airbus, while stocks such as Qiagen, Volkswagen, and Mercedes-Benz closed strongly.
Commentary on the broader economic landscape offered by Thomas Altmann of QC Partners focused heavily on geopolitical tensions. He noted that the United States is threatening Iran and any nation that maintains economic ties with the country. However, Altmann stressed that the U.S. has yet to provide concrete details or a timeline for enforcement, and consequently, the stock markets failed to react to the announcement due to its vagueness. Altmann suggested that investors are accustomed to threats coming from the White House, viewing them primarily as a leverage mechanism intended to compel Iran back into negotiations.
Regarding market activity, Altmann also observed that the DAX started the trading week with extremely low volume, which constituted the second-lowest trading volume of the year. Trading in the index has been even scarcer on Pentecost Monday. He explained that the current low volume-where few buyers meet few sellers-provides a structural downside support for the DAX; however, he cautioned that if selling interest increases while buying remains limited, price losses would become inevitable.
In other global financial news, the European common currency was slightly weaker early Tuesday, with one Euro costing 1.1661 US dollars. Conversely, the price of the oil fell. Around 9 AM German time, a barrel of North Sea Brent crude was priced at 91.49 US dollars, reflecting a decrease of 0.7 percent or 68 cents from the previous day’s close.
