The Dax index declined on Thursday, closing the trading session at 25,361 points, which represented a drop of 0.8% compared to the previous day’s close. Initially, the index remained slightly below yesterday’s closing level for a considerable period before dipping further into the negative during the early afternoon.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, the European Central Bank’s (ECB) interest rate hike was widely anticipated. He noted that the critical uncertainty lies in whether further monetary tightening will occur in December and whether the central bank will intervene again next year. Lipkow emphasized that energy prices remain the decisive factor, contributing significantly to future inflationary pressures.
The price of Brent oil, in particular, seems to be experiencing rapid increases. Market uncertainty is being fueled by escalations in the Middle East, which are disrupting shipping lanes through the Strait of Hormuz. The ECB has publicly acknowledged this conflict, listing it as a discernible price driver within the energy markets.
In terms of stock movements, the shares of Deutsche Börse, Hannover Rück, and Continental topped the list of gainers, while SAP, Adidas, and Hochtief finished the day as the biggest decliners.
In commodity markets, gas prices saw a substantial jump. The price for a Megawatt-hour (MWh) of gas scheduled for October delivery rose to 82 euros, marking a 4% increase from the previous day. Should this level persist, it translates to a consumer price of at least 13 to 16 cents per kilowatt-hour (kWh), including taxes and ancillary costs.
Oil prices also rose sharply. By 5 p.m. German time on Thursday, a barrel of Brent crude from the North Sea was trading at $105.60 USD, up 4.3% from the close of the preceding trading day.
Meanwhile, the European community currency weakened slightly on Thursday afternoon. The euro cost $1.1626 US dollars, making the dollar available for 0.8601 euros.
