The DAX index continued its upward trajectory on Tuesday, building on a mildly positive start to the trading day and progressing further into positive territory by midday. Around 12:30 PM, the benchmark index was calculated at approximately 24,160 points, representing a 0.4 percent increase compared to the previous day’s closing level.
Leading the gains within the DAX were Commerzbank, MTU and Bayer, while FMC, Fresenius and Siemens Energy saw declines by the afternoon.
Commenting on the market’s behavior, analyst Andreas Lipkow noted a degree of investor indifference to ongoing trade disputes. He observed a “defiant” stance among Asian investors, who responded to the imposition of tariffs on Japanese and South Korean products with buying activity. Lipkow characterized activity in European markets as “resembling whistling in the woods” suggesting a lack of coordinated direction.
Despite a postponement of certain deadlines, Lipkow emphasized that the trade dispute remains a persistent threat. He indicated that the current actions by the US administration suggest the dispute is intended to become a long-term feature, diminishing the likelihood of a rapid return to previous trade dynamics. New industries and sectors may increasingly become targets within this ongoing trade conflict.
Lipkow further highlighted a shift in investor strategy, with increased positioning in cyclical sectors. However, he cautioned that the gain within the DAX currently lacks momentum. Trading volume remains relatively low, restricting the potential for sustained price increases. He forecasts that the German market’s ability to generate further gains is increasingly limited.
The euro strengthened to $1.1735 by midday Tuesday, equivalent to $0.8522 per euro.
Conversely, oil prices experienced a decline. Brent crude was trading at $69.34 per barrel around midday German time, a decrease of 24 cents, or 0.3 percent, compared to the close of the previous trading day.
