The German stock index DAX experienced a decline on Thursday, closing at 24,451 points – a decrease of 0.4 percent compared to the previous day’s close. The index had earlier reached a record high of 24,639 points at the start of trading, but subsequently turned negative in the early afternoon.
“A degree of caution emerged among investors due to concerns that communications from Washington may yet materialize” commented Jochen Stanzl, Chief Market Analyst at CMC Markets, referring to ongoing trade negotiations. “However, such a pause is quite normal following a new record. Investors are currently awaiting a clear signal from Washington regarding the potential level of upcoming tariffs.
Stanzl also addressed remarks made by US President Donald Trump concerning former Brazilian President Jair Bolsonaro, who is facing legal proceedings related to alleged involvement in a post-election attempt to subvert the democratic process. Trump, whose supporters were involved in the 2021 Capitol riot, characterized the legal action against Bolsonaro as a “witch hunt.
The analyst suggested Trump’s involvement – specifically, the threat of 50-percent tariffs – constituted “a new chapter in the ongoing trade theater”. He stated, “It’s no longer solely about reciprocity, but about what the man in the White House personally favors or disfavors”. He further warned, “This pattern could potentially be applied to any other country in the world.
Throughout the trading day, BMW shares led the gains on the Frankfurt Stock Exchange, while the shares of Telekom, Allianz, Siemens Energy and Commerzbank underperformed.
Gas prices increased, with a megawatt-hour (MWh) for delivery in August costing 35 euros, representing a 3 percent increase compared to the previous day. This translates to a consumer price potentially reaching at least 8 to 10 cents per kilowatt-hour (kWh), if these levels persist.
Conversely, oil prices saw a significant decrease, with a barrel of Brent North Sea crude costing 69.04 US dollars – a drop of 115 cents, or 1.6 percent, below the previous day’s closing price.
The European currency weakened during the afternoon, with the euro trading at 1.1684 US dollars, making the dollar worth 0.8559 euros.
