The DAX index commenced trading on Thursday with losses, reflecting ongoing market uncertainty. At approximately 9:30 AM local time, the benchmark index was calculated at around 23,595 points, representing a decline of 0.3 percent from the previous day’s closing level.
Porsche Holding, BMW and Volkswagen led the performance gains within the index, while Siemens Healthineers, Siemens Energy and Heidelberg Materials trailed at the lower end. Trading volumes remain significantly below historical averages.
“The DAX is essentially treading water” commented Thomas Altmann of QC Partners. “The search for direction persists and until a clear trajectory emerges, both buyers and sellers are adopting a cautious approach”. This sentiment appears to be the prevailing attitude amongst DAX investors, characterized by a posture of observation and restraint.
Analysis reveals a divergence between the DAX and the US market. Throughout the second half of the year, 22 companies previously or currently listed on the DAX have negatively impacted the index’s performance, compared to 20 that have contributed positively. This indicates a decoupling from the broader global rally, particularly when compared to the S&P 500. The DAX has underperformed the S&P 500 by eight percentage points year-to-date; while the latter has recorded a seven percent gain, the DAX has registered a one percent decline.
The Euro experienced a slight appreciation Thursday morning, trading at $1.1746, with the US Dollar fetching €0.8514.
Crude oil prices also decreased; Brent North Sea crude was selling at $69.11 per barrel around 9:00 AM local time, a reduction of 20 cents, or 0.3 percent, from the previous day’s closing price.
