On Tuesday, the DAX opened trading with little change. At around 9:30 AM, the leading index was calculated at approximately 26,315 points, which was 0.04 percent below the previous day’s closing level. Leading the list of top gainers were Gea, Rheinmetall, and Deutsche Telekom, followed by Daimler Truck, Qiagen, and Airbus.
Financial commentary suggests that market optimism has once again been premature. Thomas Altmann of QC Partners noted the increasing difficulties in achieving an opening of the Strait of Hormuz or bringing an end to the conflict, citing Donald Trump’s counterdemands against Iran. Furthermore, Altmann pointed out that energy prices are climbing, and investors must prepare for sustained higher energy costs.
While bond markets reacted to the renewed rise in interest rates, stock markets remained surprisingly calm. Altmann explained that the foundation supporting the recent price rallies has eroded. Although the DAX managed to secure a minor gain yesterday, trading volume was at a four-week low. Most participants, he added, appear to be waiting to see how developments unfold. It is considered surprising that, despite a prior sharp increase and the current rocky news environment, investors are not taking more profits. Technically, this trend suggests an overheated market, as 13 of the last 16 trading days have closed higher. Last time the DAX was this overbought in January, it followed a brief but rapid correction of about five percent.
In broader global markets, the European community currency was slightly weaker in the morning: the euro cost 1.1538 US dollars, while the dollar was available for 0.8667 euros. Concurrent with this, the price of oil rose. Around 9 AM German time, a barrel of North Sea Brent crude cost $89.38, an increase of 1.9 percent from the previous day’s close.
