The DAX remained strongly positive on Tuesday, maintaining the robust start seen earlier in the day. By 12:30 PM, the index reached approximately 26,585 points, reflecting a gain of 1.2 percent compared to the previous trading session. Infineon, Deutsche Bank, and Henkel topped the performance list, while Symrise, SAP, and Mercedes-Benz registered the lowest returns.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that investors in Frankfurt remain committed to core German stocks, anticipating a continuation of the cyclical economic recovery. This market optimism is supported by the ongoing reporting season, which is providing fresh positive momentum. Notably, Lipkow highlighted a significant improvement in market breadth: 30 of the 40 companies listed on the Dax are currently profitable, providing a wider and more solid foundation for the upward trend.
A major focus is on Infineon. The analyst stated that the semiconductor group demonstrates to international investors that the DAX possesses a strong AI capability and can capitalize on the worldwide boom in artificial intelligence investment. Prior to the release of its quarterly figures, the extent to which Infineon would benefit from changes in demand and pricing was uncertain. Lipkow emphasizes the shift in focus, explaining that the emphasis previously rested too heavily on the recently struggling automotive sector. Now, growth opportunities within the AI and data center fields are taking greater precedence, which could restore Infineon’s attractiveness to international investors who had previously targeted American and Asian semiconductor firms.
Positive signs also stood out for Henkel during the day’s trading. The consumer goods corporation had recently faced challenges related to high costs and visible reluctance from consumers to spend. According to the market expert, it is therefore crucial for investors that perspectives are beginning to brighten despite the difficult market environment.
Meanwhile, the Euro strengthened slightly by midday on Tuesday, trading at $1.1224 per Euro, while the US Dollar was priced at 0.8909 Euros.
