Market sentiment dampened Tuesday, resulting in a significant decline for the German DAX index. At the close of Xetra trading, the index registered at 23,329 points, representing a 1.8 percent decrease compared to the previous day’s closing value.
Banking sector stocks experienced a particularly sharp downturn, with shares in Commerzbank, Deutsche Bank and Heidelberg Materials showing substantial losses. Insurance sector titles also moved decisively into negative territory. Limited support came from a selection of chemical and technology stocks, which demonstrated relative resilience at the upper end of the trading list.
Investor caution appears to have influenced trading ahead of the Federal Reserve’s highly anticipated interest rate decision scheduled for Wednesday, fostering a tendency to avoid financial sector holdings. Furthermore, shifting monetary policy expectations bolstered the value of the Euro and contributed to the continued upward trajectory of gold prices.
The Euro strengthened during the afternoon, reaching 1.1844 US dollars, effectively making one US dollar worth 0.8443 Euros.
Gold prices saw a slight increase, with the price for a fine ounce reaching 3,684 US dollars (+0.2 percent) – equivalent to 100.01 Euros per gram.
Meanwhile, oil prices registered a marked increase. Brent North Sea crude was trading at 68.33 US dollars at approximately 5:00 PM German time, reflecting an 89-cent or 1.3 percent rise from the previous trading day’s close.
