The DAX index moved into negative territory on Wednesday after starting the day somewhat positively. By approximately 12:30 PM, the leading index had reached around 25,475 points, representing a 0.4 percent decrease compared to the previous day’s closing level. Among the top-performing stocks were SAP, Vonovia, and MTU, while Scout24, Infineon, and Allianz were listed towards the end of the daily gainers.
Market expert Andreas Lipkow noted that continually rising energy prices are negating the recent recovery trend. This suggests that the mood in the German stock market remains fragile as long as oil prices do not sustainably fall below the $100 mark.
Regarding the domestic economy, Lipkow stated that the Purchasing Managers’ Indexes (PMI) are painted in mixed colors. While the manufacturing sector index climbed to 53.8, it still falls short of expectations and showed a decline compared to the previous reading. Conversely, the service sector is developing significantly better, offering support for hopes of a further economic recovery.
However, the expert added that these economic figures are currently playing a minor role on the stock exchange. Investors remain focused on developments in the Middle East and their immediate effect on energy costs. As long as Brent crude remains above $100, even positive economic data can only temporarily mask inflation worries among investors. For now, the price of oil is dictating the direction of the stock markets, causing all other factors to take a secondary position.
