The Dax index opened positively on Thursday, showing gains early in the trading day. Around 9:30 AM local time, the benchmark index reached approximately 24,625 points, marking a 0.3 percent increase from the closing level of the previous day. Sartorius, Merck and BASF led the risers in the index, while Commerzbank, Siemens Energy and Rheinmetall lagged behind.
According to Jochen Stanzl, Chief Market Analyst at CMC Markets, investors are returning to risk-taking strategies following the Dax’s record high. The ongoing negotiations between the United States and the European Union are being interpreted as a sign of economic strength in the region. “The fact that several tariffs are already in place yet growth remains robust allows the issue to be largely overlooked amidst continued price increases” Stanzl observed.
The market is keenly anticipating the upcoming earnings season, hoping for confirmation of the prevailing optimism. While expectations for a complete removal of tariffs remain low, Stanzl suggests that the resilience of the economy and the adaptability of businesses could sustain growth and profits despite the imposition of new tariffs from the US. The hope for a mutually beneficial agreement persists as long as negotiations continue.
Stanzl cautioned that a disappointing earnings season coupled with a weakening in economic data could trigger a market correction similar to what occurred in April, when investors reacted negatively to recession fears and declining share prices.
The Euro strengthened slightly on Thursday morning, trading at $1.1734, with the dollar fetching €0.8522.
Meanwhile, oil prices experienced a slight decrease, with a barrel of Brent North Sea crude oil costing $70.11 around 9:00 AM local time – a fall of 8 cents, or 0.1 percent, compared to the end of the previous trading day.
