The German DAX index rebounded from a sluggish start to trade positively Thursday, as investors cautiously awaited the European Central Bank’s (ECB) upcoming decision on future interest rate policy. By 12:30 PM local time, the index stood at 23,670 points, a gain of 0.2 percent compared to the previous day’s close.
Market expert Andreas Lipkow noted investor hesitation ahead of the ECB press conference, stating, “Investors are currently standing on the sidelines and awaiting today’s ECB press conference. No change in interest rates is expected, but there will likely be comments on the economic developments in the EU”. He added that the political situation in France and inflation assessments were also expected to be significant topics of discussion.
Shares in the arms manufacturing sector spurred the rise in stock prices. This was likely fueled by speculation surrounding suspected Russian drones that entered Polish airspace, thereby encroaching on NATO territory. Airbus and Rheinmetall were among the top five gainers, with HeidelbergCement, Bayer and Deutsche Bank also experiencing strong demand during the midday trading session.
The euro saw a slight depreciation against the US dollar Thursday afternoon, trading at $1.1684. Consequently, the dollar fetched €0.8559.
Gold prices weakened, with a fine ounce selling for $3,622 (-0.6 percent) mid-afternoon. This translates to €99.66 per gram.
Oil prices likewise declined, with a barrel of North Sea Brent crude costing $67.10 as of noon German time, a decrease of 39 cents, or 0.6 percent, compared to the previous trading day’s closing price.
