The DAX Index ended the Tuesday trading day considerably lower after a weak start. By approximately 12:30 PM, the leading index was calculated to be around 24,110 points, marking a drop of 1.0 percent compared to the previous day’s closing level.
Market participants were confronted by the ongoing unresolved situation regarding the crisis in Iran, coupled with hopes that other states might initiate further mediation efforts. Additionally, economic indicators weighed heavily on the market. Analyst Andreas Lipkow noted that both Germany’s consumer prices and the ZEW Confidence Index results were factored into the day’s trading. While consumer prices came in as expected, rising by 2.9 percent, the ZEW economic expectations for May significantly missed forecasts, showing -10.2 points compared to the anticipated -19.5 points. The analyst cautioned that the ZEW survey itself was conducted in the context of potential ceasefire expectations between the US and Iran and should therefore be interpreted with caution.
Looking at specific stocks, companies like Rheinmetall, Zalando, and Munich Re recorded losses. Conversely, Bayer, Symrise, and Merck saw gains.
Commodity and currency markets also showed movement throughout the day. The Euro weakened against the US Dollar by the afternoon, exchanging at $1.1748 per dollar, while the dollar was valued at 0.8512 euros. Gold prices also dipped, with fine ounces trading at $4,701 by the afternoon, representing a decrease of 0.7 percent. Meanwhile, the price of crude oil increased strongly. A barrel of Brent crude in the North Sea cost $107.10 by noon German time on Tuesday afternoon, marking a 2.8 percent rise from the previous day’s close.
