The DAX started Wednesday nearly flat. At 9:30 a.m., the leading index was recorded at approximately 25,330 points, placing it 0.1% above the previous day’s closing level. The stock list was topped by Infineon, Qiagen, and RWE, while Volkswagen, FMC, and BMW closed out the list.
According to Thomas Altmann of QC Partners, the reporting season for German companies began positively with Deutsche Börse yesterday. The focus will shift to the DAX heavyweight, SAP, whose results are expected this evening, meaning any resulting market movement for the DAX is anticipated tomorrow.
Altmann noted that “bargain hunters are here,” adding that recent dips have encouraged initial purchasing. While he cautioned that it is premature to claim an uptrend reversal, he acknowledged the positive sign that stocks are once again being bought, a sentiment further boosted by the recent quarterly earnings of SpaceX and Super Micro.
Despite the growing investor interest, the DAX continues its directional search. The analyst pointed out that the German index has been trading sideways within a range of over 1,000 points for roughly six weeks. Currently, the 200-day moving average appears to be providing strong support against declines. However, he warns that profits are immediately taken if the index reaches between 25,500 and 26,000 points-a reflection of the present trading market dynamics.
On the macro level, the European common currency was slightly weaker in the morning; a Euro traded at $1.1223, which consequently meant the Dollar was available for 0.8910 Euros. Meanwhile, oil prices edged higher. A barrel of North Sea Brent crude cost $110.00 around 9 a.m. German time, representing a 1.1% increase from the previous day’s close.
