The Dax experienced a decline on Wednesday. At the close of trading on Xetra, the index stood at 26,126 points, marking a decrease of 0.3 percent compared to the previous day’s closing value. Following a positive start, the Dax quickly shed its gains and traded throughout the rest of the day near yesterday’s closing level.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that “the rally in the first half of the week, over 24,600 points, demanded a lot of strength from the Dax.” He added that given the surprising momentum and the rapid pace at which the market moved from one record to the next during the first two trading days of the month, investors are now adopting a more cautious stance. Even though many companies reported better-than-expected quarterly figures, profits were occasionally being taken.
Furthermore, investors were once again confronted with the realities in the Middle East today. Lipkow noted that “Iran and the USA described their talks as fragile and do not expect a conclusion within the next 48 hours.” At the same time, the Houthi rebels are intensifying their operations in the Red Sea, planning to intercept more oil tankers. This geopolitical situation is somewhat overshadowing the current positive market mood.
The analyst also explained that prospects for Infineon are becoming less clear, and the risk of a sudden end to the semiconductor cycle is increasing. He stated that “China is approaching with large steps and massive investment, seeking to become a serious competitor in the international semiconductor market.”
Toward the end of trading, shares in Fresenius and Beiersdorf led the list of price movements. On the other hand, the stock prices of Deutsche Post, Continental, and Infineon formed the bottom of the list.
Meanwhile, gas prices fell. A megawatt-hour (MWh) of gas scheduled for September delivery cost 53 euros, which is six percent lower than the previous day. If this price level remains stable, this implies a consumer price of at least ten to twelve cents per kilowatt-hour (kWh), including ancillary costs and taxes.
Oil prices dropped slightly. A barrel of North Sea Brent crude cost $79.30 on Wednesday afternoon around 5 PM German time, which was six cents, or 0.1 percent, less than the close of the previous trading day.
The European community currency strengthened slightly on Wednesday afternoon: the euro cost $1.1546, and the dollar was accordingly available for 0.8661 euros.
