The Dax index dropped on Thursday afternoon after starting the trading day positively. By 12:30 PM, the benchmark index was calculated at approximately 24,875 points, registering 0.2 percent lower than the previous day’s close. In terms of individual stocks, titles from Hannover Rück, Siemens Healthineers, and Daimler Truck performed poorly. Conversely, shares belonging to Henkel, Infineon, and Continental saw gains.
Andreas Lipkow, lead market analyst at CMC Markets, cautioned that investors do not view the current developments in the Middle East as a “free pass” for the Dax to recapture old record levels, stating, “Too much porcelain has been smashed, and the implications for the economy are completely open”. Following this, Lipkow noted that the three conglomerates-Henkel, Vonovia, and Siemens Healthineers-had presented mixed quarterly figures within the Dax 40, reflecting the overall state of German corporate reporting for the season.
Regarding inflation and energy, companies have managed to absorb a significant portion of past energy price hikes rather than passing them directly to consumers. However, this trend is expected to weaken in the coming months if oil prices remain at high levels. Some visible impacts have already emerged, particularly in air travel, and further secondary effects may follow.
In commodity and currency markets, the Euro strengthened slightly on Thursday afternoon. The exchange rate was 1 euro for $1.1764, meaning 1 dollar bought 0.8501 euros. Gold saw significant gains, reaching $4,743 for a fine ounce in the afternoon, marking an increase of 1.1 percent. Meanwhile, oil prices fell sharply. A barrel of Brent crude (North Sea grade) cost $98.33 on Thursday afternoon around 12:00 German time, a decrease of 10.5 percent, or 1154 cents, compared to the close of the previous trading day.
