The DAX index managed to reverse a weak start on Thursday, climbing into positive territory by lunchtime. By a little after 12:30, the index stood at 24,030 points, representing a gain of 0.3 percent from the previous day’s close.
Market commentators remain cautious ahead of the long weekend. According to Andreas Lipkow of CMC Markets, the continued situation in the Middle East is sustaining rising oil prices, which is putting downward pressure on consumer confidence. Additionally, while increased energy costs were not reflected in current price hikes, they remain a major concern for central banks and are keeping the spotlight on the stock markets. Lipkow anticipates that the European Central Bank’s (ECB) committee meeting today will confirm these risks, given that the interest rate decision is due at 2:15 p.m.
In terms of the broader economic outlook, the analyst noted that Europe may already be at the onset of stagflation, unlike the United States, which still benefits from robust economic development that mutes the threat of such a scenario. This potential reality, Lipkow suggested, makes it difficult for the ECB to implement effective monetary or interest rate policies that stabilize inflation without simultaneously stalling economic growth.
Company earnings provided key figures on Thursday. The German logistics group DHL exceeded market expectations, with particularly strong results noted in its express delivery segment. By contrast, BASF continues to show signs of the troubled European economy, reporting an expected decline in first-quarter revenue. Volkswagen reported significant drops in both sales and profits, attributed specifically to slowing business activity in China and the United States.
On a global currency front, the euro appreciated on Thursday afternoon, trading at 1.1708 US dollars. Conversely, the dollar was available for 0.8541 euros. Investors found significant gains in the gold market; by afternoon trading, the price reached 4,637 US dollars per fine ounce (+2 percent), equating to 127.33 euros per gram.
