30 PM.. This represented a drop of 1.2 percent compared to the closing level of the previous trading day. BASF, Deutsche Börse, and Brenntag led the list of stocks appreciating, while SAP, Rheinmetall, and Gea were among those declining.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investors in Frankfurt remain highly sensitive to the political and military events taking place in the Middle East. He noted that the ongoing attacks are manifesting on financial markets through rising energy prices, with the Brent crude oil type rebounding above $100 per barrel. Concerns persisted regarding potentially high rates of inflation and the resulting stricter monetary policies from central banks.
Lipkow also pointed out that, within the DAX 40, technology stocks like SAP and Infineon were particularly under selling pressure, and the shares of automobile manufacturers were once again on the losing side. Although the gains from the previous day had not been entirely erased, the risk of more extensive price declines in the coming trading days remained latent. He warned that such a development could resemble a classic “bull trap” leading to an even stronger subsequent correction. He added that the buying frenzy observed on Wednesday could dissipate into a sell-off, potentially dragging the DAX down significantly.
Separately, the European common currency showed some strength by midday on Thursday; the euro cost $1.1677, making the dollar available for 0.8564 euros. Meanwhile, oil prices increased again; around midday German time, a barrel of North Sea Brent crude cost $98.40, a 3.9 percent increase compared to the previous day’s close.
