The DAX experienced a downturn on Tuesday, closing Xetra trading at 25,865 points, representing a 0.5 percent drop compared to the previous day’s close. After a weak start, the index gradually shed its losses throughout the day.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that investors remain cautious, driven by the ongoing American interim elections and anticipated economic data. In addition to the JOLTS labor market figures, markets are keenly watching the quarterly reports from AMD and Spotify. Lipkow noted that the uncertainty surrounding the political future of the US is colliding with a reporting season where even positive surprises are struggling to deliver sustained stock gains.
This sentiment was evident in Spotify’s performance. Lipkow pointed out that while the streaming provider demonstrated slightly better than expected revenue growth, the results were evidently insufficient to genuinely excite investors. The growing skepticism surrounding Palantir was even more pronounced, the analyst explained. Despite the AI specialist surpassing expectations yesterday, its shares were subject to pressure, briefly falling more than six percent during early trading. Investors are increasingly using even favorable company news as a trigger to reduce their positions in selected technology stocks.
Lipkow suggested that a noticeable shift in market sentiment is taking shape. Previously, simply the prospect of continued growth in AI was often enough to fuel significant stock gains, but now, even impressive operational figures are frequently met with decisions by investors to take profits. A degree of relief was offered by the energy markets. Crude oil prices pulled back more significantly from their highest levels during the trading day. This movement is primarily influenced by news developments in the Middle East, which continues to cause considerable price volatility.
In terms of stock performance, Bayer’s shares led the index by a clear margin, followed by Highfield and Infineon. On the other end of the list, Fresenius Medical Care and Zalando recorded the steepest declines.
Separately, the gas price dropped: a megawatt-hour (MWh) of natural gas for December delivery cost 91 Euros, a decrease of four percent from the day before. If this price level persists, this implies a consumer price of at least around 14 to 17 cents per kilowatt-hour, including statutory charges and taxes.
Oil prices also fell; at approximately 5 PM German time on Tuesday, a barrel of Brent crude priced in the North Sea went for $103.19 US dollars, marking a decrease of 1.5 percent, or 158 cents, from the previous day’s closing. Meanwhile, the price of gold softened, trading at $3,931 US dollars for a fine ounce this afternoon, reflecting a 0.4 percent decline. This corresponds to a price of 112.93 Euros per gram.
