The DAX continued in negative territory on Thursday, remaining significantly down even after a weak start to the trading day. By 12:30 PM, the leading index had been calculated at around 25,425 points, representing a decline of 0.9 percent compared to the previous day’s closing level.
Some stocks struggled amidst the downward trend, with Infineon, SAP, and Siemens Energy ranking at the bottom of the price list. However, shares of Merck, Zalando, and Hannover Rück showed resilience and defied the prevailing trend.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that nervousness remains high across European equity markets. He explained that many companies are failing to meet even already lowered expectations, and investors are punishing these failures severely. Lipkow added that the disappointing figures from the French luxury group Hermès are burdening the entire sector. Furthermore, he suggested that even when SAP reports strong quarterly results, investors are using the opportunity to take profits.
Lipkow also highlighted that developments in the bond markets and inflation continue to be significant headwinds. Persistent high energy prices maintain upward pressure on costs, and the failure to see sustainable easing in government bond yields leaves the stock markets without a vital impetus for a lasting recovery. He stated that as long as there is no relief on either the interest rate or inflation front, many investors will likely secure their gains and reduce their risks.
In currency markets, the Euro was slightly weaker on Thursday afternoon, with one Euro fetching $1.1220, meaning the dollar traded at 0.8913 Euros.
In commodities, the gold price dropped notably; by the afternoon, a fine ounce was trading at $4,091 (a 1.2 percent decrease), equivalent to €117.24 per gram. Conversely, the oil price saw a sharp increase. Brent crude from the North Sea rose to $111.90 per barrel around 12 PM German time, marking a 2.9 percent increase from the previous trading day’s close.
