The DAX index opened Thursday’s trading session with gains, reflecting positive investor sentiment. By 9:30 AM local time, the benchmark index was calculated at approximately 24,260 points, representing a rise of 1.1 percent above the previous day’s closing level. Siemens, Infineon and Siemens Energy led the list of top performers, while Eon, Vonovia and RWE experienced less favorable trading.
According to Jochen Stanzl, Chief Market Analyst at CMC Markets, investors are still viewing levels below 24,000 points on the DAX as attractive entry points. Despite a weaker seasonal pattern, uncertainty surrounding trade negotiations and cautionary announcements from industries like chemicals, investors are betting on a second half of the year that will see improvements in both fiscal and monetary policy.
However, fresh threats directed towards Federal Reserve Chair Jerome Powell by the U.S. President introduced an element of market disruption. Stanzl suggests that any action taken against Powell could trigger a significant devaluation of the U.S. dollar. A strengthening Euro against the dollar would likely be detrimental to European export companies, but it could conversely increase the return for U.S. dollar investors who have invested in the DAX in recent months. Year-to-date, the DAX has demonstrated substantial growth, rising by 37 percent in dollar terms, compared to a 6.5 percent increase for the S&P 500.
The Euro was weaker Thursday morning, trading at $1.1587, with the dollar requiring €0.8630.
Meanwhile, oil prices saw a slight increase. Brent crude, a North Sea variety, was trading at $68.56 per barrel around 9:00 AM local time, a 4-cent or 0.1 percent rise from the previous day’s closing price.
