The Dax saw a positive gain on Thursday, closing the trading day at 25,027 points, which reflects a 0.4 percent increase compared to the previous day’s closing figure. During the session, Infineon and Siemens led the index in terms of stock performance, while BMW, SAP, and Mercedes Benz finished at the bottom of the price list.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that the Dax continues to struggle to overcome the 25,000-point barrier. However, he noted that trading activity overall remains modest, pointing to a potential mid-summer lull indicated by decreasing volatility and reduced trading volume.
Lipkow suggested that investors have been given time to catch their breath, at least concerning the geopolitical front. He anticipates that the truce in the Middle East could lead to calmer financial markets over the next 60 days.
The analyst also pointed to supportive U.S. economic data, noting that the new applications for unemployment benefits slightly weakened at 226,000. Furthermore, the Philly Fed Index performed well, surpassing expectations by 10.3 points over the predicted 10. This indicates a robust U.S. economy combined with a subtly cooling labor market, a situation that Liplkow believes is favorable for current investors.
Despite this positive outlook, concerns are growing among some investors due to the high valuation levels and volatility seen in individual stocks. According to the market analyst, daily price fluctuations of between ten and fifteen percent are no longer isolated incidents, highlighting a growing disagreement among investors.
Meanwhile, energy prices declined. A megawatt-hour (MWh) of gas for delivery in July cost 41 euros, reflecting a three percent drop from the previous day. If this price level sustains, the consumer price for gas, including ancillary costs and taxes, would be approximately nine to eleven cents per kilowatt-hour (kWh). The price of Brent crude oil also fell sharply; a barrel of North Sea-grade Brent was trading at $76.79 on Thursday afternoon at 5 PM German time, a decrease of 276 cents (3.5 percent) from the preceding day’s close.
The European common currency was weaker on Thursday afternoon. The Euro cost $1.1478, while the dollar was consequently trading for 0.8712 euros.
