The DAX experienced a dip on Thursday, concluding the Xetra trading session at 26,325 points, marking a 0.4 percent decline compared to the previous day’s close. Although the index started at yesterday’s level, it fluctuated throughout the day between 26,500 and 26,700 points, briefly reaching a new all-time high before turning negative in the afternoon.
Andreas Lipkow, Chief Market Analyst at CMC Markets, commented on the market sentiment, noting that even strong quarterly results are no longer automatically rewarded with share price gains, particularly as bargain hunters acquire shares of stocks like Zalando. He pointed to companies such as Deutsche Telekom, Commerzbank, and DHL, stating that their reported quarterly earnings did not provide any significant boost to their stock prices because investors had already largely priced in the positive business developments beforehand.
Lipkow further observed that even Deutsche Telekom’s announced dividend increase and share buyback program failed to generate renewed excitement. The reaction was even more dramatic for Rheinmetall, where the defense group suffered a stock price loss exceeding 16 percent following a reduced forecast.
On a more hopeful note, German economic data offered some support. The analyst explained that the industrial order intake, while slightly weaker than the expected 4.6 percent at 4.4 percent, maintains hopes for an ongoing economic recovery. This strengthens the argument that the German economy could see stronger growth in the coming year.
Before the close, Zalando, Bayer, and BASF led the performance charts, while Infineon and Rheinmetall occupied the bottom spots.
In external markets, the price of gas rose; a megawatt-hour (MWh) of gas for December delivery cost 90 euros, a two percent increase from the day prior. If this price level remains stable, it implies a consumer price of at least 14 to 17 cents per kilowatt-hour (kWh), factoring in taxes and ancillary costs.
The price of oil also climbed. At around 5 PM German time on Thursday, a barrel of Brent North Sea crude reached $96.99 USD-a 2.5 percent increase from the previous trading day’s close.
Meanwhile, the European common currency weakened slightly on Thursday afternoon. One euro was trading at $1.1224 USD, meaning the dollar was available for 0.8909 euros.
