The DAX remained in negative territory on Tuesday, continuing a weak trend that began earlier in the day. At approximately 12:30 PM, the index stood at around 24,885 points, representing a decline of 1.0% compared to the previous trading day. SAP, Deutsche Telekom, and Qiagen led the list of top-performing stocks, while Infineon, Hochtief, and Siemens Energy concluded the list.
Andreas Lipkow, Chief Market Analyst at CMC Markets, noted that the DAX was expanding its losses, dipping notably below the 25,000 point mark, mirroring the pre-market losses announced in New York. Initially, a potential easing in the Middle East conflict had been priced into the shares as a positive boost, but this effect is fading. Lipkow warned, however, that even the slightest incident in the Middle East during the agreed 60-day negotiation period could quickly trigger a renewed escalation, describing the current atmosphere as a “powder keg with a very short fuse.”
Furthermore, Lipkow pointed to noticeable correction trends in technology stocks as a drag on sentiment. He highlighted that SpaceX shares had lost 35% from their IPO high in recent trading days, resulting in an estimated 600 billion dollars of value being wiped out solely from that stock. Given that these shares were widely viewed as a public investment, many private investors likely sustained significant losses.
The market expert added that the technical picture of the DAX worsened with the renewed bounce off the 25,000 mark. On the fundamental side, disappointment was amplified by the lackluster quarterly figures from chemical wholesaler Brenntag and German Purchasing Managers’ Indices that were weaker than expected. This suggests that the end of the German economic slump may be even further away than many investors had hoped.
In other market movements, the euro weakened slightly on Tuesday afternoon, trading at $1.1411 per euro, while the dollar was available at 0.8763 euros. Meanwhile, oil prices fell; Brent crude, specified for the North Sea, cost $77.39 per barrel around noon German time, a decrease of 51 cents, or 0.7%, from the close of the previous trading day.
