The German benchmark index, the DAX, commenced trading on Thursday with losses, reflecting ongoing uncertainty amongst investors. Shortly after the opening bell at 9:30 am local time, the index was calculated at approximately 23,595 points, representing a decline of 0.3 percent from the previous day’s closing level.
Among the best-performing stocks were Porsche Holding, BMW and Volkswagen, while Siemens Healthineers, Siemens Energy and Heidelberg Materials lagged at the lower end of the leader board.
According to Thomas Altmann of QC Partners, the DAX remains in a state of consolidation. “The DAX is treading water. The search for direction continues” he stated. “Until there’s clarity regarding the overall trajectory, both buyers and sellers are adopting a cautious approach”. Trading volumes remain significantly below historical averages, with the prevailing sentiment among DAX investors appearing to be one of watchful waiting.
A review of the year-to-date performance reveals a concerning trend. As of the second half of the year, 22 companies that have been, or are currently, part of the DAX have negatively impacted the index’s performance, compared to 20 that have contributed positively. This signals a decoupling of the DAX from the global market rally. The DAX has underperformed the US S&P 500 by eight percentage points during this period. While the S&P 500 has seen a gain of seven percent, the DAX has experienced a one percent decline.
The euro exhibited a slight increase in value on Thursday morning, trading at $1.1746, with the dollar fetching €0.8514.
Meanwhile, oil prices saw a decrease. Brent crude, a benchmark for North Sea oil, was priced at $69.11 per barrel around 9:00 am local time, representing a 20-cent or 0.3 percent reduction compared to the previous day’s closing price.