The DAX maintained its upward trend on Tuesday, staying positive even after a promising start during the morning. Around 12:30 p.m., the leading index was calculated at approximately 25,260 points, rising 1.0% from the previous day’s closing level. Leading the performance were Infineon, Scout24, and Zalando, while the final positions included Bayer, Heidelberg Materials, and Hannover Rück.
Jochen Stanzl, Chief Market Analyst at Consorsbank, commented that the DAX is currently consolidating in close proximity to its record high, forming a bullish flag pattern, and that investors are anticipating a further upward breakout. He noted that after yesterday’s decline, investors showed readiness to re-enter the market whenever prices pulled back. “For almost a week now, we have observed a build-up of bullish pressure that could discharge upwards. As long as buyers continue to defend the DAX, a breakthrough toward new record levels could be imminent”.
However, Stanzl also pointed out that the risk posed by the Middle East conflict remains the primary concern for investors, as evidenced by the volatility in the DAX over the past 24 hours. Despite some progress in negotiations, investors still consider the timing of the reopening of the Strait of Hormuz to be central to the markets. He warned that “the later this happens, the more severe the impact will be on the global economy”.
In currency markets, the common European currency strengthened somewhat by noon on Tuesday; the Euro was trading at 1.1643 US dollars, meaning the dollar could be acquired for 0.8589 Euro.
Meanwhile, oil prices dropped. Around noon German time, a barrel of North Sea Brent crude cost $94.04, which was 94 cents, or 1.0%, less than the previous trading day’s close.
