The Dax index was hesitant on Tuesday, following a cautious start to the trading day, until midday. By around 12:30 pm, the leading index was calculated at approximately 21,950 points, 0.2 percent above the previous day’s closing level.
Initially, the Dax did note a new all-time high, but quickly moved downward again. “The Dax has indeed set new all-time highs on Tuesday, but it has repeatedly hit a wall of selling pressure above the 21,950-point level” said market analyst Andreas Lipkow.
The German stock market is currently benefiting from the relatively low valuation ratios compared to the US stock markets and from ongoing inflows of money into equity funds. Institutional investors, however, continued to act cautiously and selectively.
“In particular, the cyclical stocks have shown a tendency to sell off in the recent trading days. This trend is still visible today and the defensive sectors, with representatives such as Fresenius, Sartorius, Deutsche Telekom and insurance stocks, are in the spotlight. A certain nervousness is noticeable, but it is still being overridden by the new record highs in the Dax” said Lipkow.
The European common currency was slightly stronger on Tuesday afternoon: one euro cost $1.0318 and one dollar was worth $0.9692 in euros.