The German DAX index opened Wednesday’s trading session with losses. As of 9:30 AM local time, the benchmark index was calculated at approximately 23,520 points, representing a decline of 0.4 percent from the previous day’s closing level.
Leading the gains within the DAX were shares of Rheinmetall, Deutsche Telekom and MTU, while Deutsche Bank, Adidas and Brenntag were among the weakest performers.
“The engine room of the DAX is sputtering” commented Jochen Stanzl, Chief Market Analyst at CMC Markets. He characterized rally attempts as fleeting and noted a lack of strong buying interest. “What remains is a trading pattern that is becoming increasingly constrained. The German benchmark index has lacked a clear direction for four weeks now.
Shifts in US President Trump’s policy regarding Ukraine have brought renewed attention to the armament sector, pushing share prices upwards. Early trading in Asia already saw some companies in this sector reach record highs. The increase in geopolitical tensions, alongside efforts by the US and Europe to encourage India and China to reduce their reliance on Russian oil, is also contributing to a rise in oil prices. While this may present challenges for Russia in its oil sales, demand is expected to emerge elsewhere. “Russia produces nearly as much oil as Saudi Arabia. A complete disruption would trigger a catastrophic surge in oil prices” Stanzl stated.
The euro weakened against the US dollar, trading at $1.1788, equivalent to €0.8483 per dollar.
Crude oil prices also saw a slight increase. A barrel of Brent North Sea crude was priced at $67.76 at approximately 9:00 AM local time, a rise of 13 cents, or 0.2 percent, compared to the end of the previous trading day.
