The DAX index commenced Wednesday’s trading session with gains, reflecting positive sentiment among investors. Shortly after 9:30 AM, the benchmark index was calculated at approximately 24,220 points, representing a 0.8 percent increase compared to the previous day’s closing level.
Leading the gains on the index were shares in Porsche, Mercedes-Benz, Volkswagen and other automotive titles, which registered substantial increases. Conversely, shares of SAP, Eon and Infineon closed the morning session with losses, bucking the overall upward trend. SAP recently released its business figures, reporting positive profit development. However, the company refrained from raising its expected profit target for the full year, a move anticipated by some analysts.
Investor reactions were also influenced by a recently reached agreement between the United States and Japan regarding trade disputes. Jochen Stanzl, Chief Market Analyst at CMC Markets, noted that the agreement demonstrated the value of ongoing negotiations. He suggested it reinforced the possibility of successful outcomes through dialogue and potentially provides a framework for a similar agreement with the European Union. The easing of sector tariffs on Japanese automobiles was highlighted as a particularly relevant aspect for the EU. However, Stanzl noted the absence of detailed specifics in the announcement, a characteristic of similar statements from the US administration. The practical implementation of the newly announced measures remains uncertain.
The Euro was slightly weaker Wednesday morning, trading at $1.1745, with a US dollar equivalent of €0.8514.
Meanwhile, oil prices rose, with a barrel of Brent North Sea crude fetching $68.79 around 9:00 AM German time, a 20-cent or 0.3 percent increase compared to the previous trading day’s close.
