The Dax index continued its upward trend on Wednesday, with a gain of 1.2 percent by midday. By 12:30 pm, the index was calculated at around 21,289 points, with Siemens Energy and Adidas leading the pack, and Porsche’s shares at the bottom of the list.
“The gains are largely driven by the defensive sectors” explained market analyst Andreas Lipkow. “Investors are being more cautious about the cyclical sectors. Following Porsche’s revenue warning, the positive sentiment among analysts for the automotive sector seems to be waning. It is now interesting to see if this sales slump will also show up in other automotive companies. The stocks from this sector had recently driven the rally in the German overall market. A significant decline in this sector could also slow down the overall market.”
The European common currency was stronger on Wednesday afternoon, with one euro equivalent to 1.0455 US dollars, and one dollar to 0.9565 euros.
Meanwhile, the oil price rose, with a barrel of Brent crude costing around 79.86 US dollars by 12 pm German time, a 57-cent or 0.7 percent increase from the previous day’s close.