The German stock market experienced a positive performance on Tuesday, with the DAX index closing at 23,881 points, representing a 0.6% increase compared to the previous day’s close. Following a cautious opening, the DAX turned positive during the morning and subsequently expanded its gains.
Market analyst Andreas Lipkow noted continued investor interest in shares of major German companies. He attributed the market’s appeal to its relative affordability in comparison to US equities, suggesting a shift in investment flows towards DAX-listed businesses. However, Lipkow cautioned that this trend could shift in the coming week as the upcoming earnings season begins, potentially introducing volatility into the market.
Throughout the trading day, MTU shares led the gainers in Frankfurt, followed by Scout 24, Bayer and Fresenius. Daimler Truck shares, however, lagged at the bottom of the index.
Energy prices saw significant decreases. The price of natural gas for delivery in November fell to €31 per megawatt-hour (MWh), a 4% decline from the previous day. Maintaining this price level implies a consumer price of approximately 8 to 9 cents per kilowatt-hour (kWh), inclusive of taxes and additional charges.
Crude oil prices also decreased notably, with a barrel of Brent crude North Sea oil trading at $67.06, a 1.3% reduction from the end of the previous trading day.
The Euro weakened slightly against the US dollar, trading at $1.1726, equivalent to $0.8528 per Euro.
