The DAX index opened the trading day on Wednesday with gains, continuing a positive trend. By 9:30 AM, the leading index was calculated at approximately 24,220 points, representing a 0.8 percent increase compared to the closing level of the previous day.
Leading the gains were shares in Porsche, Mercedes-Benz, Volkswagen and other automotive stocks, experiencing significant increases. Conversely, shares of SAP, Eon and Infineon closed with losses, bucking the overall positive trend. SAP recently released its business figures, reporting positive profit development. However, the company refrained from raising its speculated profit target for the full year.
Investor sentiment was bolstered by an agreement reached between the United States and Japan concerning trade disputes. Jochen Stanzl, Chief Market Analyst at CMC Markets, noted, “Japan has managed to avert a negative shift in negotiations with the U.S”. He described the agreement with the Trump administration as confirmation that negotiations can be worthwhile and yield results. Investors in Frankfurt are now cautiously optimistic that Japan’s deal could serve as a template for an agreement with the European Union.
A key detail highlighted as positive was the reduction of sector tariffs on Japanese automobiles, an issue of particular concern for the EU. However, as with previous announcements from the Trump administration, specific details remain scarce. The practical implementation of what has been declared remains unclear. According to Stanzl, “Investors are reassured that the message is aligned: negotiations are sensible and can achieve better outcomes.
The euro experienced a slight depreciation Wednesday morning, trading at $1.1745, with the dollar valued at €0.8514.
Meanwhile, oil prices rose; a barrel of Brent North Sea crude was trading at $68.79 around 9:00 AM German time, a 20-cent or 0.3 percent increase compared to the closing of the previous trading day.