The DAX started the trading day on Tuesday with slight losses. Around 9:30 AM, the leading index was calculated at approximately 25,805 points, which was 0.1% below the closing level of the previous day. Beiersdorf, Münchner Rück, and SAP were at the top of the price list, while Siemens Energy, Infineon, and Hochtief finished the list.
Jochen Stanzl, Chief Market Analyst at Consorsbank, commented that a slow but steady “summer break” is becoming apparent on the Frankfurt floor, which feeds growing doubts about the sustainability of the recently achieved new high in the DAX. He noted that weakening trading volumes and increasing fear of a correction in AI stock valuations are weighing on market sentiment.
Stanzl described falling prices in technology stocks as a double-edged sword for the DAX. On one hand, if tech stocks come back too quickly, the DAX could be dragged down by the general selling trend. On the other hand, the DAX might benefit if investors attempt to secure their gains from the past months by diversifying their portfolios more broadly. However, Stanzl concluded that it remains unclear which of these two effects will outweigh the other, emphasizing the pervasive anxiety that the DAX might not be able to defend its new record high in the near term and could fall back.
In related markets, the European common currency weakened slightly in the morning; the Euro cost $1.1431, while the dollar was available for 0.8748 Euros. Meanwhile, the price of oil rose significantly. Around German morning time, a barrel of Brent crude from the North Sea was priced at $72.94, representing an increase of 95 cents, or 1.3%, compared to the previous day’s close.
