On Thursday, the Dax gained. At the close of trading on Xetra, the index was calculated at 26,772 points, a gain of 0.4 percent compared to the previous day’s closing.
Andreas Lipkow, Head Market Analyst at CMC Markets, commented that after investors drove the Dax above the 27,000 point mark for the first time in the morning, the confidence subsided. He noted that the jump above this psychologically important threshold may have been too ambitious in the short term. Profits were taken, partly because the speculation initially, and the confirmation of the management change at AI highflyer Nvidia in the afternoon, caused nervousness across the market.
Lipkow explained that the sudden departure of the Nvidia face, Huang, not only caused the semiconductor manufacturer’s stock to drop double digits by a percentage twice, but it also radiated onto other AI and technology stocks. He added that in an industry whose valuations heavily depend on long-term growth expectations, such uncertainties quickly trigger major price movements.
Furthermore, he pointed out that increasing yields in the international government bond markets were occurring again, bringing inflation and interest rate concerns, which had somewhat receded, back into focus for investors. Higher bond yields make financing more expensive for companies and make fixed-income investments more attractive compared to stocks.
According to Lipkow, investors are reacting particularly sensitively to this development following the strong rally in the stock market. The stock exchanges are thus put under pressure from two sides: by new uncertainties in the technology sector and the return of interest rate risks.
However, declining energy prices remained an important support. He stated that these reduce cost pressure on companies, improve consumer purchasing power, and could contribute to inflation relief in the medium term. This prevents profit-taking from expanding into a broader wave of selling. Lipkow also noted that the fundamental outlook for the German stock market remains constructively sound.
Right up until the close, Munich Re, Hochtief, and Zalando were at the top of the performance list. Merck, FMC, and GEA were found at the bottom of the list.
Meanwhile, the gas price increased. A megawatt-hour (MWh) of gas for December delivery cost 93 euros, representing a seven percent rise from the previous day. If the price level remains stable, this implies a consumer price of at least around 14 to 17 cents per kilowatt-hour (kWh), including ancillary costs and taxes.
The oil price also rose. A barrel of Brent, a North Sea grade, cost 93.80 US dollars on Thursday afternoon around 5 pm German time, which was 1.1 percent more than at the close of the previous trading day. The European Community currency was weaker on Thursday afternoon: One euro cost 1.1058 US dollars, and one dollar was correspondingly available for 0.9043 euros.
