Frankfurt’s DAX index rebounded into positive territory on Wednesday, recovering from a sluggish start to midday trading. The index was calculated at approximately 24,260 points around 12:30 PM, representing a gain of 0.2 percent compared to the previous trading day. Leading the performance were Commerzbank, Porsche and Siemens Healthineers, while Adidas, Symrise and Mercedes-Benz concluded among the top performers.
Market analyst Andreas Lipkow attributed the movement to traders adjusting positions in anticipation of month-end closing and the commencement of the second half of the year. He noted a general lack of volatility expected across European financial markets, citing a “relatively clear situation” that limits the potential for unexpected developments.
However, Lipkow suggested that shifts may occur in the United States, potentially favoring bonds over equities. He highlighted ongoing uncertainties surrounding the US-China trade deal and the future monetary policy direction of the US Federal Reserve in the second half of the year.
“The recently released GDP data for Germany and the Eurozone mirrored expectations, demonstrating a weakening trend” Lipkow added. The positive effect seen in the first quarter has now been neutralized, with subsequent economic effects becoming more pronounced. Investors are currently awaiting the release of US GDP data and ADP figures, alongside quarterly earnings reports from several major corporations.
The euro was slightly weaker mid-day, trading at $1.1542, with the dollar fetching €0.8664.
Meanwhile, oil prices declined. Brent crude traded at $71.86 per barrel, representing a decrease of 65 cents, or 0.9 percent, compared to the close of the previous trading day.