On Wednesday, the Dax gained significantly. At the close of trading on Xetra, the index calculated to 26,663 points, a rise of 1.2 percent compared to the previous day’s close. After a positive start, the Dax initially pulled back some of the gains before approaching the level reached in the morning later on.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented, “After the strong price increases, the Dax currently lacks the necessary momentum for the next great leap. However, little has changed regarding the fundamentally positive situation. The market bulls remain in a comfortable position and can at any time attempt a new run to the all-time high just under 26,700 points.”
The German stock market continues to be supported by the hope for a gradual economic recovery. “The recently published economic data increasingly indicate that the German economy could be leaving its period of weakness behind,” Lipkow stated. Furthermore, the quarterly results of numerous Dax companies showed a noticeable improvement in important sectors, according to Lipkow. “This gives the recent upward movement a broader fundamental foundation. Investors are no longer relying solely on a relaxation of geopolitical risks or falling energy prices, but increasingly on an actual boost to corporate profits.”
At the same time, the rekindled AI euphoria is leaving clear traces in the Dax. “Especially Siemens Energy and Infineon benefit from the continuously high demand for computing power and the necessary energy infrastructure for it,” explained the analyst. “The latest business figures from the technology sector have shown that the billion-dollar investments in artificial intelligence continue to provide significant growth potential.”
“Investors are positioning themselves, on the one hand, in cyclically sensitive companies that could benefit particularly strongly from an economic recovery. On the other hand, defensive business models remain in demand, promising stable returns even in a less dynamic economy,” Lipkow said. “This mix of growth fantasies and hedging shows that while investors have become more optimistic, they are by no means losing sight of the risks. This broader positioning could prove to be an important prerequisite for a sustainable continuation of the year-end rally.”
Right before the close of trading, the shares of Siemens Energy and Infineon were at the top of the price list. Brenntag and Rheinmetall’s stocks formed the bottom of the list.
Meanwhile, the gas price rose: One Megawatt-hour (MWh) of delivered gas cost 87 Euros in December, which is two percent more than the previous day. This implies a consumer price of at least around 13 to 16 cents per kilowatt-hour (kWh) including ancillary costs and taxes, should this price level remain permanent.
The oil price also rose: A barrel of North Sea grade Brent cost 93.86 US-Dollars on Wednesday afternoon around 5 p.m. German time, which was 2.6 percent more than at the end of the previous trading day.
The European community currency was weaker on Wednesday afternoon: One Euro cost 1.1094 US-Dollars, and conversely, a Dollar could be acquired for 0.9014 Euros.
