The Dax saw a turnaround on Tuesday afternoon, moving into positive territory after a slightly negative start in the morning. Around 12:30 PM, the index was calculated at approximately 25,460 points, representing a gain of 0.2 percent compared to the previous trading day. Siemens Energy, Infineon, and Hochtief led the performance board, while Mercedes-Benz, Beiersdorf, and Rheinmetall finished at the bottom of the list.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented, “There is some movement in the Dax at lunchtime.” However, he noted that overall, investors are holding back, as recent quarterly results from major consumer goods corporations offer little cause for optimism. The findings from Nestlé, Reckitt, and Beiersdorf demonstrated that consumers are increasingly tailoring their purchasing habits to align with rising living costs. Lipkow added that brand manufacturers, in particular, are feeling the growing price sensitivity of their customers.
This consumer reluctance is no longer limited to traditional mass-market goods. Recent results from luxury brands like Hermès and Louis Vuitton also indicated that even affluent customers are becoming more cautious. According to Lipkow, inflation is not just affecting prices, but is increasingly reshaping consumer behavior. This makes it more challenging for companies to pass on rising costs without jeopardizing sales and market share, meaning the consumer slump risks becoming a significant pressure on profit margins.
In broader markets, the European common currency weakened mid-day; the Euro traded at 1.1150 US dollars, meaning the dollar was priced at 0.8969 Euros. Meanwhile, oil prices fell. Approximately at noon Central European Time, a barrel of North Sea Brent crude cost $114.60, a drop of 118 cents, or 1.0 percent, compared to the previous day’s closing price.
