The DAX index opened Thursday’s trading session with gains, demonstrating positive momentum early in the day. By approximately 9:30 AM, the benchmark index stood at around 24,465 points, a rise of 0.9 percent above the previous day’s closing level. Leading the gains were Deutsche Bank, Deutsche Telekom and Siemens Healthineers, followed by Infineon, Vonovia and MTU.
Market analysts suggest investors have largely factored in the recently agreed trade deal between the United States and the European Union, viewing the agreement between Japan and the U.S. as a conceptual framework. However, experts caution that the EU-U.S. agreement may encounter more complexities. “The economic interdependencies and overlaps between Europe and the U.S. are considerably more intricate, with significantly more focal points and interfaces, than those between Japan and the U.S”. noted one analyst, adding that only the automotive and mechanical engineering sectors are directly comparable.
Attention is now focused on upcoming quarterly results from major companies including Tesla, Alphabet and Deutsche Bank. Early reports indicate that Germany’s largest bank performed strongly in the first half of the year, exceeding expectations with its financial results. Despite the initial gains, analysts believe that sustained increases above the 24,500-point mark for the DAX will be challenging. “The risk remains that disputes could still arise between the U.S. and the EU during the detailed elaboration of the trade agreement” noted one observer. “Therefore, investors will likely maintain a degree of caution despite the encouraging signs in the stock market.
The euro weakened slightly Thursday morning, trading at $1.1765, with a dollar fetching €0.8500.
Meanwhile, oil prices saw an increase; a barrel of Brent North Sea crude was trading at $68.98 around 9:00 AM German time, a rise of 47 cents, or 0.7 percent, compared to the previous day’s closing price.