The DAX index registered gains on Wednesday, closing at 24,240 points, marking a 0.8 percent increase compared to the previous day’s close. While the market displayed early promise, momentum softened throughout the trading session, partially attributed to concerns regarding the contrast between trade deals with Asian markets and potential outcomes with the European Union.
Analysts noted that the DAX remains confined within a relatively neutral technical range of 24,000 to 24,500 points, suggesting that current price movements lack definitive directional significance.
The ongoing earnings season continues to reveal a consistent trend: pervasive uncertainty surrounding tariffs is reportedly forcing companies globally to proactively prepare for potentially adverse conditions, even amidst generally positive business performance. This proactive stance is prompting cost-cutting measures typically reserved for periods of underperformance. This sentiment is reflected in investor behavior, with continued equity investments being paired with purchases of gold, which itself reached historically high prices. Should tariff-related uncertainties subside, a significant growth surge could potentially follow, a scenario likely to be associated with the current administration.
UniCredit’s latest financial results have generated considerable attention, with an upward revision of their outlook and positive implications for shareholders. The reported figures overshadowed the earlier abandonment of the Banco BPM acquisition and the ongoing, yet unresolved, attempt to acquire Commerzbank.
The Commerzbank situation, even without a finalized acquisition, has spurred growth within the German bank, benefiting UniCredit through increased profits. However, analysts pointed out a notable contrast between the bank’s lower operating profit and the ultimately higher overall profit figure boosted by one-off effects.
The Euro weakened slightly, trading at 1.1724 US dollars, with a dollar equivalent to 0.8530 euros.
Gold prices also experienced a decline, reaching $3,412 per fine ounce (-0.5 percent), which translates to €93.56 per gram.
Crude oil prices followed suit, with a barrel of North Sea Brent crude fetching $68.16, a decrease of 43 cents or 0.6 percent compared to the previous trading day’s close.
