The DAX continued its upward trend on Thursday, rising further into the afternoon following a positive start to trading. Around 12:30 p.m., the leading index registered approximately 25,970 points, marking a gain of 1.1 percent compared to the previous day’s closing level.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that investors were displaying exceptional leniency toward companies today, focusing primarily on the positive aspects of the reporting season. He added that even Volkswagen’s mixed quarterly figures struggled to dampen the buying sentiment, with the company’s stock actually moving into the winner’s column during the current trading session.
However, some stocks, notably Vonovia and a few others, failed to keep pace with the broader rally. Lipkow explained that Vonovia highlighted how investors are still differentiating between various business models. At the moment, the risks within the real estate sector and what many investors perceive as limited price potential are weighing more heavily than the reported operational figures.
Looking ahead, attention is increasingly focused on the upcoming press conference by the European Central Bank (ECB). Central to discussions will be assessments regarding the future development of prices in the Eurozone, particularly concerning the impact of high energy costs. Simultaneously, investors are awaiting key US economic data. Lipkow stated that the combination of growth, labor market, and inflation indicators makes these upcoming announcements particularly significant, as they are expected to provide crucial clues regarding the monetary policy room available to central banks in the coming months.
Meanwhile, the European common currency softened slightly in the afternoon. The Euro traded at 1.1148 US dollars, meaning the dollar could be bought for 0.8970 Euros.
The price of gold weakened, settling at $4,035 per fine ounce in the afternoon, representing a decline of 0.4 percent. This equated to a price of 116.36 Euros per gram.
Oil prices saw a notable decline. Midway through the afternoon on Thursday, a barrel of North Sea Brent crude cost $114.00, a decrease of 130 cents, or 1.1 percent, compared to the close of the previous trading day.
