The DAX index experienced a significant increase on Tuesday, closing at 24,217 points – a 1.0 percent gain compared to the previous day’s close. Following a positive start to trading, the index continued to build on its gains throughout the morning, maintaining a high level for the remainder of the session.
Market analyst Andreas Lipkow attributed the positive performance to prevailing market sentiment favoring equities. “The outlook remains favorable in many sectors, contributing to a generally positive mood” he noted. While Lipkow suggests that immediate upward potential for the DAX 40 companies may be limited, investors are seizing opportunities, particularly in the technology sector.
He highlighted the ongoing influence of digitalization and artificial intelligence as key driving forces in the market. However, Lipkow cautioned that market participants remain more reserved concerning traditionally cyclical industries. Selective bargain hunting in automotive stocks has also contributed to a muted sentiment, potentially influenced by existing regulatory levies.
Throughout the trading day, shares of Rheinmetall, MTU and Siemens Energy led the performance list in Frankfurt. Conversely, shares of Porsche, BASF and Deutsche Post underperformed.
Energy prices also saw notable movement. Natural gas for delivery in August rose to €34 per megawatt-hour (MWh), a 4.0 percent increase from the previous day. This price level could translate to a consumer price of at least eight to ten cents per kilowatt-hour (kWh) including supplementary charges and taxes if sustained.
Crude oil prices also saw a strong rise. Brent crude, a benchmark for North Sea oil, reached $70.76 a barrel on Tuesday afternoon, representing a 72-cent or 1.0 percent increase from the previous trading day’s close.
The European currency weakened on Tuesday afternoon, with the euro trading at $1.1539 and the dollar fetching €0.8666.
