The Dax experienced a weak start on Thursday but managed to reduce its losses by midday. At around 12:30, the index stood at 23,520 points, just under 0.1% lower than the previous day’s close. Rheinmetall’s shares led the way, rising by five percent, after the German Foreign Minister called for an increase in the country’s defense budget, aligning with a demand made by US President Donald Trump.
The oil price was also under close scrutiny, dropping significantly: A barrel of North Sea crude oil was trading at 63.84 US dollars at around 12 pm German time, which was a decrease of 225 cents or 3.4% compared to the previous trading day’s close. Low oil prices can indicate a weak economy, but they can also reflect a more optimistic assessment of the situation in the Middle East, as well as alleviate inflationary pressures.
The European common currency, the Euro, was stronger on Thursday afternoon, with one Euro worth 1.1207 US dollars and one US dollar equivalent to 0.8923 Euros.