The German stock market experienced a significant rally on Thursday, with the benchmark DAX index closing notably higher. At the close of Xetra trading, the index registered at 24,423 points, reflecting a gain of 1.3 percent compared to the previous day’s closing value. Following a positive opening, the DAX broadened its gains throughout the morning and largely maintained those levels in the afternoon.
Market analyst Andreas Lipkow suggested the upward trend may be linked to investor sentiment ahead of the upcoming earnings season. “It appears market participants are attempting to revisit record levels in the DAX” he commented, noting particular investor focus on technology stocks.
Lipkow attributed this momentum to continued enthusiasm surrounding artificial intelligence (“AI-mania”), which he believes is bolstering the technology sector. He observed a tendency to disregard negative trading impulses and data, interpreting them as supporting expectations for further interest rate reductions in the United States. Geopolitical factors, such as the war in Ukraine and trade tensions between the US and China, are currently taking a secondary role in market considerations.
Shares of Siemens, Siemens Energy and Zalando led the gainers in Frankfurt as trading approached its close. Conversely, Merck, MTU and Scout 24 faced downward pressure and were among the worst performers.
Energy markets presented a mixed picture. Natural gas prices saw a slight increase, with a megawatt-hour (MWh) for delivery in November costing 31 euros. This level implies a consumer price of at least eight to nine cents per kilowatt-hour (kWh), factoring in ancillary costs and taxes, should this pricing level persist. In contrast, the price of crude oil declined sharply; a barrel of Brent North Sea crude was trading at $64.58, a decrease of 77 cents or 1.2 percent compared to the previous trading day’s close.
The European currency also weakened, with the euro trading at $1.1693, resulting in a dollar being worth €0.8552.
