The DAX experienced little change on Tuesday. By the close of trading on Xetra, the index was calculated at 25,578 points, just marginally higher than the previous day’s close.
Leading the stock list were Zalando, Infineon, and GEA. Meanwhile, companies such as Allianz, Rheinmetall, and Deutsche Bank were in the red.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that despite the DAX briefly approaching the 25,800 mark during uneventful trading, its momentum faltered, and profit-taking pressures drove the German leading index back to the prior day’s closing level.
Support for the market also initially came from the oil sector. Optimism surrounding a swift conclusion to the war in Iran had already contributed to falling energy prices at the start of the week, a trend that continued on Tuesday. The Brent crude oil futures briefly dropped below the psychological milestone of $100. However, Lipkow noted that this dip must now solidify into a sustained downtrend to create a stronger impulse for the DAX. Merely a brief foray below the round number is not enough to alleviate investors’ inflation concerns.
According to Lipkow, the development in the Middle East remains crucial. A lasting diplomatic solution could not only mitigate geopolitical risks but also reduce inflationary pressure through lower energy costs. This would diminish the importance of one of the biggest burdens on stocks and bonds over the past few weeks.
In other market movements, the European common currency weakened on Tuesday afternoon. One Euro traded at $1.1434, and a dollar was available for 0.8746 Euros.
The price of gold also softened, falling 0.3 percent to $4,329 per fine ounce in the afternoon, corresponding to 121.73 Euros per gram.
Meanwhile, oil prices declined. At approximately 5 p.m. German time on Tuesday, a barrel of North Sea Brent crude cost $99.80, which was 54 cents, or 0.5 percent, less than the close of the previous trading day.
