The DAX continued its quest for new records on Tuesday morning, following a strong start to the week, calculation at around 9:30 a.m. placing the leading index at roughly 26,240 points-a gain of 0.9 percent over the previous closing level.
Bayer, Infineon, and Siemens Energy topped the list of rising stocks. In contrast, Zalando’s shares plummeted by nearly 15 percent, as the online fashion retailer reported disappointing figures, falling short of expectations.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that “investor sentiment in Frankfurt remains strong, continuing to push the DAX above the 26,000 mark today.” He also observed that in Asian trading, semiconductor and AI-related technology stocks were again the main focus. Investors engaged in highly selective buying, capitalizing on the previous day’s price weakness to establish new positions.
Regarding global market drivers, Lipkow pointed out that the AI powerhouse Palantir managed to reassure skeptics after releasing its quarterly results following US market close, instilling new momentum in the AI sector.
European investors were confronted with a series of quarterly reports this morning from companies including Continental, Fresenius Medical Care, and Evonik, alongside Zalando’s figures. Results from Bayer are still expected during the trading day. Macroeconomically, focus remains on incoming US industry orders, trade balance figures, and JOLTS data.
Overall sentiment is currently positive, leading analysts to suggest that investors may continue to concentrate their positions in specific sectors. However, a cautious approach persisted, characterized by low trading volumes over recent weeks. Despite the new DAX records, considerable euphoria has not surfaced, which Lipkow suggests could, at least in the short term, serve as fertile ground for continued price increases.
He added that the Iran conflict remains a dominant and high-stakes theme in the market, exerting strong influences on energy markets, even if the immediate volatility has slightly subsided.
In currency markets, the Euro remained relatively stable on Tuesday morning; one Euro cost $1.1510, meaning the dollar was priced at 0.8688 Euros.
Commodity prices saw mixed movements. Gold rose slightly, trading at $4,061 per fine ounce this morning (+0.2 percent), equating to 113.44 Euros per gram. Conversely, the price of crude oil dropped. A barrel of North Sea Brent crude cost $84.52 around 9 a.m. German time, a rise of 0.9 percent or 75 cents from the prior day’s close.
