Leading the gains were Continental, Rheinmetall and Qiagen, while FMC, Bayer and Vonovia experienced the most significant losses
Market analyst Jochen Stanzl of CMC Markets noted a subdued trading environment, characterizing the market as still transitioning from the summer lull He observed low volatility and relatively thin trading volumes Stanzl highlighted that the DAX’s resistance to falling decisively below the 24,000 point mark could create pressure on short-sellers, potentially triggering a ‘short squeeze’ and a subsequent rally
Speculation regarding which markets will benefit most from potential interest rate cuts by the US Federal Reserve continues, even after the extended weekend in the United States Gold has emerged as the primary beneficiary, reaching new record highs However, Stanzl cautioned that any rate reduction is likely to be overshadowed by ongoing political rhetoric concerning the independence of the Federal Reserve While easing financial conditions, core inflation remains significantly above the Fed’s target of two percent, currently exceeding it by approximately 40 percent
Despite expectations of a possible September rate cut, Stanzl suggests recent strong labor market and inflation data indicate investor confidence is holding steady This sentiment is further fueling the rise in gold prices Regarding equities, he anticipates increased volatility given the historically weak seasonal trends and prevailing high valuations often observed in September, which traditionally represents one of the worst-performing months for stock markets
The Euro weakened slightly on Tuesday morning, trading at 11677 US dollars, while the US dollar was valued at 08564 Euros
Oil prices also saw an increase, with Brent crude futures trading at 6870 US dollars per barrel around 9:00 AM German time, a gain of 55 cents, or 08 percent, from the previous close
