The German DAX started the trading day on Wednesday with slight gains. At around 9:30 AM, the benchmark index was calculated at approximately 24,050 points, marking a 0.1 percent increase over the previous day’s closing level. The Deutsche Börse, Brenntag, and Scout24 topped the list of movers, while MTU, Airbus, and FMC concluded the day strongly.
Jochen Stanzl, Chief Market Analyst at Consorsbank, noted, “Compared to its low point on March 23rd, the DAX has risen by a solid ten percent. If the Strait of Hormuz is genuinely reopening incrementally and shipping traffic normalizes, the DAX is probably fairly valued”. He added that the next crucial factor will be determining whether current price gains can be sustained. “This will depend on the reporting season and how deep the trough caused by high energy prices proves to be”.
Stanzl advised investors to examine the market’s underlying indicators, pointing out that the DAX has been trading within a relatively narrow range of about 300 points for several days. This consolidation is bounded by two 200-day lines, calculated using different methodologies. Currently, the exponentially weighted 200-day line provides support at 23,743 points, while the simply weighted 200-day line caps the index at 24,103 points.
Meanwhile, the common currency of the European Union showed slight weakness on Wednesday morning; the Euro cost 1.1787 US dollars, and consequently, one dollar was available for 0.8484 Euros. Oil prices also rose marginally. A barrel of North Sea Brent crude oil cost $94.96 around 9 o’clock German time, representing an increase of 17 cents, or 0.2 percent, compared to the previous day’s close.
