German equities continued a downward trend on Tuesday, following a weak opening and remaining in negative territory throughout the morning session. The DAX index was calculated at approximately 23,630 points around midday, representing a decrease of 0.5 percent compared to the previous trading day’s closing value.
Leading the gains within the index were Sartorius, Porsche and Zalando, while Symrise, Beiersdorf and Bayer experienced the largest declines.
Earlier in the day, the Centre for European Economic Research (ZEW) released data indicating better-than-expected medium-term economic expectations from financial analysts and institutional investors. However, this positive data failed to generate a significant boost to the market.
“The ZEW indicator of economic expectations saw an unexpected increase this month, exceeding consensus estimates” noted Ralf Umlauf of Helaba. “While the assessment of the current situation has softened and preliminary indications for the upcoming Ifo business climate for Germany are slightly negative, the rise in the expectations balance offers hope for a cyclical recovery in the coming quarters”. He added that expectations regarding an interest rate cut by the European Central Bank are likely to remain muted.
The euro strengthened against the US dollar during the afternoon, trading at $1.1804, meaning one dollar was worth €0.8472.
Meanwhile, oil prices declined. Brent crude, a benchmark grade of North Sea oil, traded at $67.26 per barrel around midday, a decrease of 18 cents, or 0.3 percent, from the previous day’s closing price.
