The DAX managed to maintain its upward trend on Tuesday, continuing its positive movement through lunchtime after a favorable morning start. Around 12:30 PM, the index was calculated at approximately 24,555 points, marking a gain of 0.6 percent compared to the previous trading day. Leading the list of top performers were RWE, Merck, and Allianz, while Beiersdorf, MTU, and Airbus finished in the bottom group.
Earlier, the Center for European Economic Research (ZEW) reported another drop in the medium-term economic expectations of financial analysts and institutional investors. However, Thomas Gitzel, chief economist at VP Bank, noted that while a further decline was anticipated, it was still surprising. He added that it should be considered normal for the ZEW economy expectations to fall significantly following shocks. He pointed out that even after the announcement of reciprocal US tariffs last April, the Mannheim economic barometer fell by more than 60 points, only to rise sharply shortly thereafter. Gitzel cautioned that the conflict in the Persian Gulf and rising oil prices will not pass over the German economy unnoticed. He explained that higher energy costs diminish household budgets, thereby hurting private consumption. Furthermore, the industry is directly and indirectly affected by rising energy costs. According to Gitzel, the extent of the slowdown will depend crucially on how long oil prices remain at elevated levels.
Meanwhile, the common European currency weakened by midday. The euro cost 1.1759 US dollars, meaning a dollar was available for 0.8504 euros.
Oil prices also decreased. Around noon German time, a barrel of Brent crude from the North Sea cost $94.75, which represented a decrease of 73 cents, or 0.8 percent, compared to the end of the previous trading day.
