German equities saw a modest recovery on Wednesday after an initial positive start to the trading day, although the index briefly dipped into negative territory by midday. The benchmark DAX index closed at approximately 23,750 points, a slight increase of 0.1 percent above the previous day’s closing level.
Leading the gains were Siemens Energy, SAP and Rheinmetall, while Daimler Truck, Porsche and Bayer lagged at the bottom of the performance list.
Market analyst Andreas Lipkow attributed the market’s hesitant behavior to profit-taking, noting a general risk aversion among investors. “Any gains in the overall market are currently met with profit-taking” he stated. He also pointed to the limited news flow as a contributing factor, hindering the establishment of a clear market trend. Investors are carefully observing upcoming US price data, which has prompted them to remain on the sidelines.
Despite September’s reputation for market volatility, Lipkow observed a notably calm trading environment. “For the typically volatile trading month of September, we are currently seeing a quiet market environment” he commented, adding a caveat that this could shift in the coming week, potentially leading to increased market fluctuations.
The euro weakened slightly against the US dollar, trading at $1.1709, with a dollar fetching €0.8540.
Meanwhile, oil prices rose, with a barrel of Brent North Sea crude costing $66.70 around midday, a 0.5 percent increase of 31 cents compared to the previous day’s closing price.