The DAX started the trading day on Wednesday morning with positive momentum. By 9:30 AM, the benchmark index was calculated at approximately 24,700 points, marking a 1.2% rise from the previous day’s closing level.
Andreas Lipkow, Chief Market Analyst at CMC Markets, observed that the index is picking up speed after successfully defending the 24,000 mark, anticipating a significantly positive start for the day.
This positive sentiment appears to be driven by several factors. Investors responded well to news concerning a potential US-Iran agreement, where US President Trump stated that the Strait of Hormuz has been reopened, though a sea blockade against Iran is expected to remain in place. This announcement caused energy market price listings to fall. Adding to the bullish mood were the quarterly earnings figures from AMD, a competitor to Nvidia. These results exceeded even the most optimistic expectations, causing AMD’s shares to jump over 15% in after-hours trading.
The enthusiasm was mirrored globally. Asian markets accounted for gains, with exchanges in China and South Korea closing higher (Japan remained closed for a public holiday). The KOSPI index, for instance, reached new record highs, primarily lifted by major stocks like Samsung Electronics and SK Hynix.
Looking ahead, the DAX is expected to benefit particularly from the prospects of declining energy prices. For several weeks, oil prices exceeding $100 have posed significant challenges to many German industries, suggesting that a drastic change is needed to avert a negative economic development in Germany.
The market’s focus remains heavily concentrated on the ongoing earnings season. Companies such as Zalando, Infineon, Continental, and other second-tier corporations have released their quarterly results. Investor interest is noted to be particularly high in Infineon, as its stock is influenced by both its own reported figures and those of its US rival, AMD.
For the rest of the day, Lipkow highlighted that the agenda will be compelling, featuring key data points including the European Purchasing Managers’ Indices, Eurozone producer prices, and US ADP data.
In commodity markets, gold saw strong gains, trading at $4,662 per fine ounce in the morning, a 2.3% increase, equivalent to 127.79 Euros per gram. Meanwhile, oil prices dropped noticeably. A barrel of North Sea Brent crude cost $108.40 at 9 AM Central European Time, representing a 1.3% decrease (145 cents) compared to the previous day’s closing price.
Turning to currencies, the Euro strengthening against the dollar led to a rate of 1 Euro costing $1.1728, meaning the dollar could be purchased for 0.8527 Euros.
