The DAX index opened Thursday’s trading session with gains, reflecting a positive sentiment among investors. By 9:30 AM, the leading index was calculated at approximately 24,260 points, representing a 1.1 percent increase compared to the previous day’s closing level. Siemens, Infineon and Siemens Energy led the gains, while Eon, Vonovia and RWE showed less robust performance.
Market analysts attribute the initial surge to a continued perception among investors that levels below 24,000 points present attractive entry opportunities. Despite a current period of weaker seasonality, uncertainty surrounding trade negotiations and some profit warnings from sectors like chemicals, expectations remain for an improved fiscal and monetary environment in the second half of the year.
However, recent statements from the US President directed at the Federal Reserve Chair Jerome Powell have introduced a degree of caution. According to Jochen Stanzl, Chief Market Analyst at CMC Markets, any action taken against Powell could trigger a significant depreciation of the US dollar. While such a decline in the dollar’s value and a corresponding rise in the Euro would negatively affect European export companies, it could simultaneously enhance the returns for US dollar-based investors who have invested in the DAX over recent months. Notably, the DAX has seen a 37 percent increase in dollar terms since the beginning of the year, considerably outperforming the S&P 500’s 6.5 percent gain.
The Euro weakened slightly Thursday morning, trading at $1.1587, with the dollar fetching €0.8630.
Meanwhile, oil prices experienced a slight increase. Brent North Sea crude was priced at $68.56 per barrel around 9:00 AM German time, a 4-cent or 0.1 percent increase compared to the previous day’s closing price.