The DAX experienced a subdued performance throughout the day on Thursday, remaining in negative territory until lunchtime despite a weak start. Around 9:30 AM, the leading index was valued at approximately 25,090 points, marking a 0.3 percent decrease compared to the previous day’s closing level. Rheinmetall, Infineon, and Adidas led the list of rising stocks, while Bayer, Fresenius, and Siemens Energy closed among the weakest performers.
According to Andreas Lipkow, Chief Market Analyst at CMC Markets, investors in Frankfurt are cautiously waiting regarding developments in the Middle East. Despite the resurgence of attacks, they remain hopeful for a constructive negotiation outcome between the US and Iran. This uncertainty has caused trading volume to thin out, and stock volatility is decreasing. Lipkow noted that trends of profit-taking are emerging within certain sectors and industries, with some of these profits being subsequently reinvested elsewhere.
He added that sectoral rotation is keeping the DAX stable, positioning it just above the 25,000 mark. Specifically, defense stocks are currently attracting interest, as they struggled in recent months amid growing hopes for peace. The DAX is notably supported by the stock gains of three major companies: SAP, Airbus, and Rheinmetall.
In other markets, the European currency saw a slight decline by Thursday afternoon; the euro was trading at 1.1614 US dollars, while the dollar cost 0.8610 euros. Meanwhile, oil prices rose. At noon German time, a barrel of Brent crude from the North Sea was priced at $95.90, an increase of 1.7 percent from the previous day’s close.
