On Wednesday the DAX fell sharply, closing at 23 640 points on the Xetra exchange – a decline of 1.4 % from the previous day’s close. After a weak opening, the index remained in negative territory despite some small fluctuations.
CMC Markets’ chief market analyst Andreas Lipkow remarked that investors remain nervous, financial markets are volatile and safe havens are in demand. He said the war in the Middle East puts the global economic outlook at acute risk, prompting investors to reassess their previously mildly optimistic view of the Eurozone’s further economic development.
The analyst added that rising crude‑oil prices negatively affect inflation and overall economic performance across many sectors. Airlines are the most visible sufferers, dealing with sharply higher jet‑fuel costs. The same effect ripples through logistics and the chemical industry. “Uncertainty remains the biggest problem” Lipkow said, noting that measures such as the release of national oil reserves are often ineffective and cannot prevent a prolonged energy‑supply disruption in Europe.
Only a handful of DAX constituents ended the day in the red. The most robust gain came from Brenntag shares, while Vonovia and Rheinmetall sat at the bottom of the index. Rheinmetall’s quarterly figures failed to meet the high expectations of investors.
Gas prices climbed, too. A megawatt‑hour of April‑delivery gas cost €49, up 4 % from the previous trading day. This would imply a consumer price of roughly 9‑12 cents per kilowatt‑hour, including taxes and ancillary costs, if the level were to persist.
Oil prices rose strongly as well. A barrel of Brent crude traded at $92.55 in mid‑afternoon Wednesday, an increase of 5.4 % from the previous close.
The euro weakened in the afternoon. One euro was worth $1.1573, while one dollar could be exchanged for €0.8641.
