The DAX opened its trading day on Wednesday with slight gains. Around 9:30 AM, the leading index was calculated at approximately 25,615 points, marking a 0.1 percent increase over the previous day’s closing level. SAP, Rheinmetall, and MTU led the gainers, while Deutsche Bank, Gea, and Fresenius finished in the rankings.
Thomas Altmann of QC Partners noted that the hope for peace in the Gulf region is contributing to a positive mood on the stock exchanges. He highlighted that the price of oil has fallen to a two-week low, representing a decrease of over eleven percent from its September peak. This decline in oil prices is easing expectations regarding inflation, which in turn has a positive effect on interest rates. Consequently, the yield on 30-year German bonds had dropped to its lowest point in September yesterday.
According to Altmann, stock markets are benefiting from both dropping energy prices and declining interest rates. Furthermore, the renewed optimism is driving additional purchasing activity. Following the Nasdaq Composite Index, the Nasdaq-100 Index had also reached a new record high yesterday, supported by the reignited enthusiasm surrounding artificial intelligence.
The analyst also observed that the DAX may struggle to keep pace with U.S. indices due to its lower weighting of technology stocks. The first major obstacle on the path to further gains is the 50-day moving average, currently standing at 25,783 points-a level the DAX failed to breach yesterday. However, it is possible that the index will make a new attempt today, as investors are currently focused on Washington, where U.S. President Donald Trump is hosting Chinese President Xi Jinping. Altmann cautioned that investors should not anticipate any concrete decisions from this meeting.
In other news, the European common currency traded weaker on Wednesday morning: the euro cost 1.1425 US dollars, while the dollar was fetching 0.8753 euros. Meanwhile, the price of oil dropped; at around 9 AM Central European Time, a barrel of Brent crude from the North Sea was priced at 98.81 US dollars, which was 44 cents, or 0.4 percent, less than the close of the previous trading day.
