The DAX showed a slight upward trend on Thursday afternoon, following a subdued start to the trading day. Around 12:30 PM, the leading index was calculated at approximately 24,185 points, marking a 0.5 percent gain compared to the previous day’s closing level. Top performers on the index included Zalando, SAP, and Scout24, while Qiagen, Merck, and Mercedes-Benz finished near the top.
Andreas Lipkow, Chief Market Analyst at CMC Markets, observed that investors in Frankfurt appeared somewhat disappointed by the new record highs set in New York and Tokyo, noting that “positive momentum is not fully translating to the DAX”. He pointed out that excessive concerns about the impact of persistently high oil prices on Germany’s economic development were creating caution. While the current reporting season has brought many positive results in retrospect, he cautioned that initial warning signs are visible, citing how high energy prices are already affecting the consumer sector, for example.
In contrast, US investors were betting on the continuation of recent upward trends, fueled by positive quarterly earnings. Lipkow stated that expectations, especially for major technology corporations, were high, adding that this could either lead to further short-term price gains or potentially trigger disappointment in the medium term. Meanwhile, the negotiation situation between the US and Iran remains an unpredictable market factor. Nevertheless, optimism regarding a successful negotiation process continues to boost stock markets.
Later on Thursday, the European common currency was slightly weaker; the euro exchanged for 1.1776 US dollars, meaning the dollar cost 0.8492 euros. Meanwhile, oil prices rose. A barrel of Brent crude, sourced from the North Sea, cost $96.27 around noon German time, representing a 1.4 percent increase from the previous day’s close.
