The DAX moved further into positive territory on Tuesday afternoon after a slight gain in the morning. Around 12:30 PM, the index reached approximately 24,690 points, representing a 0.5 percent increase compared to the previous trading day. The top-ranked companies included Siemens Energy, Infineon, and Hochtief, while the lowest performers were Scout24, Munich Re, and Siemens Healthineers.
This market sentiment followed a surprising report by the Center for European Economic Research (ZEW), which detailed a significant rise in the medium-term economic expectations of financial analysts and institutional investors. Thomas Gitzel, Chief Economist at VP Bank, noted that the surveyed financial market analysts are notably more optimistic, even given the recent spiking in the Persian Gulf and increased oil prices.
Gitzel stated that the German economy has shown considerable resilience recently. Reassuring hard data surfaced, showing increases in retail sales, order intake, and industrial production in May. This positive performance could potentially lead to modest GDP growth in the second quarter.
While higher oil prices will inevitably erode purchasing power and dampen private consumption, Gitzel suggested that the strong order intake indicates hope that the German economy can pick up speed this year despite various crises. He highlighted that demand for German products is rapidly increasing, concluding that the German economy has completed its “trend reversal,” noting that the current situation is significantly better than the prevailing sentiment.
Financial data for Tuesday also showed the European currency strengthening slightly at midday: the Euro was priced at 1.1427 US Dollars, and the Dollar was trading for 0.8751 Euros. Meanwhile, crude oil prices ticked up, with a barrel of North Sea Brent crude costing $89.67 around 12 PM CET-a rise of 45 cents, or 0.5 percent, over the previous day’s close.
