The DAX gained ground on Thursday, concluding the Xetra trading session at 26,367 points, marking an increase of 0.3% compared to the previous day’s close. Following a positive start, the index remained slightly positive for most of the day.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that the excitement generated by Nvidia’s financial figures and outlook successfully transitioned to the Frankfurt Stock Exchange. He commented that domestic investors appeared to prioritize the renewed optimism surrounding technology over ongoing concerns about inflation linked to high energy prices.
Lipkow further explained that despite inflation having persisted for years, leading people to either reduce consumption or postpone purchases, the sentiment reflected a cautious consumer environment. Although the GfK Consumer Climate Index slightly exceeded expectations, it remains in negative territory, indicating a downward trend in consumer behavior.
Shifting focus to global economic pressure, the analyst pointed out that US retail data also suggested a slowdown in consumption. This weakening trend, he added, somewhat eases the pressure on central banks, particularly regarding inflation risks, citing recent remarks from committee member Austan Goolsbee, who advocated for more restrictive monetary policy. Attention will soon turn to the Jackson Hole symposium for further commentary.
Lipkow concluded that Nvidia’s statements concerning investment in data centers had alleviated many industry concerns and stimulated the tech stock market. He suggested that this positive momentum could sustain a good overall market mood. If the situation in the Middle East continues to de-escalate and the Jackson Hole symposium avoids major surprises, the DAX may be able to accelerate its gains and challenge its all-time high.
In terms of stock performance, SAP, Volkswagen, and BMW topped the gainers list, while Deutsche Telekom, Commerzbank, and Continental finished at the bottom.
Meanwhile, commodities saw notable shifts. The price of gas rose, with one megawatt-hour (MWh) for September delivery costing 68 Euros, a 4% increase over the previous day. If this level persists, the resulting consumer price would be at least 11 to 14 cents per kilowatt-hour (kWh), including taxes and overhead.
Oil prices also climbed, with a North Sea Brent barrel trading at 88.64 US dollars around 5 PM German time on Thursday-an increase of 80 cents, or 0.9%, from the close of the prior trading day.
The Euro weakened slightly on Thursday afternoon against the US Dollar. The Euro traded at 1.1651 US dollars, meaning the Dollar was available for 0.8583 Euros.
