The DAX index closed with a slight gain on Wednesday, reaching 23,790 points, a 0.5 percent increase compared to the previous day’s close. After a positive start to trading, the index briefly dipped into negative territory in the early afternoon before recovering to morning levels.
Investor sentiment was impacted by US employment data released by ADP, which revealed a decline of 33,000 jobs in the non-agricultural sector. This fell short of expectations of a 99,000 job increase, prompting concerns about a potential reversal in the US labor market. Market analyst Andreas Lipkow commented that this development warrants close observation and could have implications for consumer spending. He also noted that the data might fuel speculation regarding interest rate hikes, potentially providing the US Federal Reserve with more flexibility in its monetary policy. However, analysts anticipate market participants will await the official US jobs report for further clarity.
Leading stocks on the Frankfurt Stock Exchange near the close included shares of BMW, Daimler Truck and Commerzbank, while Zalando, Vonovia and Deutsche Börse were among the laggards.
Meanwhile, the price of natural gas decreased, with a megawatt-hour (MWh) contract for August delivery costing 33 euros, a 1 percent drop from the previous day. This translates to a consumer price of approximately eight to ten cents per kilowatt-hour (kWh), including additional costs and taxes, if the price level remains stable.
In contrast, oil prices saw an increase, with a barrel of Brent crude reaching $67.70 at approximately 5:00 PM CET, a gain of 0.9 percent or 59 cents from the previous trading day’s close.
The euro weakened against the US dollar during Wednesday afternoon trading, with one euro trading at 1.1778 US dollars.
