The German Dax index closed on a positive note on Tuesday, gaining 0.7% to 20,271 points at the Xetra market close. Siemens Energy, Deutsche Bank, and Commerzbank led the pack, with Symrise, Sartorius, and Bayer closing strong. The surprise came from the US producer prices for December, which rose less than expected, sparking speculation about potential interest rate cuts and a more moderate approach to tariffs under the Trump administration.
Market analyst Konstantin Oldenburger from CMC Markets noted that the reaction to the positive surprise was relatively subdued, as the numbers do not directly translate to consumer prices. “It could change tomorrow afternoon, when the consumer price data is released” he added.
The Dax was able to build on its gains after the turnaround at the 20,000 mark, and now faces the challenge of overcoming the high of around 20,400 points set on Friday. “Until then, the recovery of the past 24 hours should be viewed with caution” Oldenburger said.
The euro was stronger against the US dollar, trading at 1.0295, while the dollar was worth 0.9713 euros. The oil price, however, slipped, with a barrel of Brent crude trading at 80.45 US dollars, a 0.7% decline from the previous day’s close.