The German stock market experienced a positive day of trading on Tuesday, with the DAX index closing at 23,881 points, a 0.6 percent increase compared to the previous day’s close. Following a cautious start, the index shifted into positive territory in the morning and subsequently expanded its gains.
Market analyst Andreas Lipkow attributed the continued investor interest in German blue-chip companies to the relative affordability of the German stock market within the international landscape. He suggested a diversion of investment from US equities into DAX-listed businesses.
However, Lipkow cautioned that this trend might not be sustained. The upcoming earnings season is expected to introduce volatility and potentially disrupt the current market dynamics.
Throughout the trading day, MTU led the gains on the Frankfurt Stock Exchange, followed by Scout 24, Bayer and Fresenius. Conversely, shares of Daimler Truck faced pressure and were at the bottom of the performance table.
In related developments, gas prices continued a downward trend, with a megawatt-hour (MWh) for delivery in November priced at 31 euros, a 4 percent decrease from the previous day. This translates to a potential consumer price of approximately eight to nine cents per kilowatt-hour (kWh), inclusive of taxes and fees, should this pricing persist.
Oil prices also saw a significant decline, with Brent North Sea crude priced at $67.06 a barrel by mid-afternoon, representing a 91-cent or 1.3 percent drop compared to the previous trading day’s close.
The European single currency weakened slightly, with one euro trading at $1.1726, resulting in a dollar being worth 0.8528 euros.