The DAX saw gains on Tuesday, closing the Xetra trading session at 25,011 points, which marked a 0.7 percent increase compared to the previous day’s close. After a positive start, the index rose throughout the morning. However, it briefly dipped into negative territory in the afternoon before eventually surpassing the midday level.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented that news of a potential ceasefire in the Middle East provided European investors with renewed confidence. Although crude oil prices are rising, he noted that investors remain optimistic about the outlook. Lipkow also pointed to the quarterly figures from 3M as a source of support; however, the earnings from General Motors were less convincing.
The analyst explained that the Middle East conflict directly impacts European financial markets via oil prices, as high dependence on imported energy presents a vulnerable flank. He added that the resulting price increases negatively affect consumer behavior, thereby straining future revenues and profits. Investors continue to hope for a de-escalation of the Iran conflict and for the continuation of the recently observed economic recovery in Germany and Europe, though he cautioned that this delicate upturn has not yet solidified.
In Frankfurt, Infineon, Siemens Energy, and FMC led the top gainers on the stock list nearing the close. Meanwhile, Scout 24 and reinsurers Hannover Rück and Munich Re were found toward the bottom of the rankings.
On the commodity front, the gas price increased; a Megawatt-hour (MWh) of gas for delivery in August cost €60, representing a 1 percent jump from the previous day. Should this price level remain stable, this implies a consumer price of at least around eleven to thirteen cents per kilowatt-hour (kWh), including ancillary costs and taxes.
Oil prices saw a strong rise for their category: a barrel of North Sea Brent crude cost $91.31 on Tuesday afternoon, around 5 PM Central European Time, marking a 2.3 percent increase from the previous day’s closing price.
Meanwhile, the European common currency weakened slightly in the afternoon. The euro traded at $1.1409, and consequently, the dollar was available for 0.8765 euros.
