The DAX index fell on Tuesday, closing the Xetra trading session at 24,271 points, marking a 0.6 percent decrease from the previous day’s close. Although the index initially saw gains after an optimistic start, it turned negative in the afternoon.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted a general nervousness across the stock markets. He stated that while investors in Frankfurt still anticipate a settlement between the United States and Iran, along with a sustainable ceasefire, the time window to navigate the complex situation-made more difficult by the tangled personnel structure within Iran’s leadership-is rapidly diminishing. Lipkow added that with the deadline approaching, the U.S. seemingly has no option but to threaten further military escalation to bring the right officials to the negotiating table and enforce its demands. However, this very reality is creating market nervousness.
According to Lipkow, the result was a decline in trading volume, with buying activity limited to select sectors and companies in the technology field. He mentioned that even defensive sectors, such as energy and insurance, were on the buying list within the DAX for the day. Conversely, Beiersdorf shares were overlooked due to disappointing quarterly earnings. The analyst observed clear signs of cooling consumer spending habits, noting that even other consumer goods corporations showed a significant decline in demand for branded products, making them vulnerable to inflation.
Near the end of trading, Scout 24 and RWE stocks led the list of top movers in Frankfurt, while Airbus and MTU concluded the day’s trading session at the bottom of the list.
In separate market news, the price of natural gas increased; a megawatt-hour (MWh) of gas for May delivery cost 42 Euros, a five percent rise from the previous day. This suggests a consumer price of at least around nine to eleven cents per kilowatt-hour (kWh), inclusive of ancillary costs and taxes, should this price level remain stable.
Oil prices also rose. A barrel of West Sea Brent crude cost $97.37 on Tuesday afternoon around 5 PM German time, representing a 2.0 percent increase compared to the previous day’s close.
Meanwhile, the European common currency was weaker on Tuesday afternoon. The Euro cost $1.1748, meaning the US Dollar could be exchanged for 0.8512 Euros.
