The DAX index experienced a decline on Tuesday. At the close of trading on Xetra, the index was calculated at 26,128 points, marking a loss of 0.8 percent compared to the previous day’s closing figure. The DAX saw its losses widen in the afternoon following a weak start.
Timo Emden, Chief Market Analyst at Cap Trader, commented on the market dynamics: “After the run toward a record, the realization returns that geopolitical risks can once again become the dominant market topic at any time.” He explained that the market is struggling for clear direction between Near Eastern risks and concerns over inflation. Although investors have become accustomed to the continuous crisis uproar involving threats and diplomacy, recent spikes in oil prices remain a major concern. Emden added that these increases fuel worry that inflation could gain steam again, putting additional pressure on central banks. He stressed that the situation in the Middle East is and remains the critical risk factor for the markets.
In terms of individual stocks, shares in SAP, Bayer, and Telekom led the price movements up to the market close, while Siemens Energy and Infineon finished at the bottom of the list.
Meanwhile, energy prices rose. The price for one megawatt-hour (MWh) of gas for September delivery reached 64 Euros, which is three percent higher than the previous day. If this price level remains stable, it implies a consumer price of at least around 11 to 13 cents per kilowatt-hour (kWh), including taxes and ancillary costs.
The oil price also climbed. On Tuesday afternoon, around 5 PM German time, a barrel of Brent North Sea crude cost $91.48, an increase of 61 cents or 0.7 percent compared to the end of the previous trading day.
As for international currency, the European community currency remained relatively stable on Tuesday afternoon: the Euro exchanged hands at $1.1578, while the dollar was priced at 0.8637 Euros.
