The Dax began the trading day on Wednesday cautiously. Around 9:30 am, the leading index was calculated at around 23,610 points, 0.1 percent below the previous day’s closing level. “Global investors are returning to Frankfurt after the trade deal between the US and China, Trump’s successful trip to Saudi Arabia and better inflation data at Wall Street” said Jochen Stanzl, chief market analyst at CMC Markets. “At the same time, they see the Dax in Frankfurt, after a 5,000-point rally, as somewhat expensive. Although this is not entirely true, the Dax is actually more affordable compared to the S&P 500 with a P/E ratio of around 23. Investors, however, are expecting that the peak of uncertainty in trade policy is over and that the US indices will now target their previous record highs again.”
“Initiated by the Trump administration, the chip deals shift the geopolitical weight of AI development significantly to the Persian Gulf and establish US technology companies as central partners in the construction of strong regional infrastructure. Trump acts like a super-CEO in Saudi Arabia, which brings large orders to Nvidia, Boeing, Starlink and other US companies. Investors smell an acceleration of growth and are buying in.”
“Eon demonstrates the operational resilience of its network infrastructure with strong earnings and investment growth in the first quarter, confirming its forecast and increasing its dividend. The utility has confidence in the long-term growth potential of the energy transition. After the stock’s sharp decline of almost seven percent in the past few days, today’s results could initially stabilize the course.”
“The defense company Renk reinforces its strong order intake and the resulting record with more than double the previous year, impressively showing why the stock has risen so strongly this year. However, this does not fully confirm what investors expect. The stock has already gained much from the good results this year” said Stanzl.
The European community currency was slightly stronger on Wednesday morning: One euro cost 1.1190 US dollars and one dollar was correspondingly worth 0.8937 euros.