On Wednesday, the Dax index closed with a gain. At the Xetra closing, the index was calculated at 22,148 points, a 0.5% increase from the previous day’s close. Following a positive start, the Dax briefly turned negative after the release of US inflation data, before reaching a new record high of around 22,194 points.
“Despite negative news, the market is still digesting and will continue to do so” commented Konstantin Oldenburger, a market analyst at CMC Markets. “Deep Seek, tariffs and now a monetary policy brake – nothing can stop the bargain hunters from continuing to enthusiastically buy stocks at these high levels.”
After the US price data four weeks ago sparked optimism, with the core inflation rate falling behind expectations, it is now clear that the situation is quite different, the analyst explained. “Both the overall consumer price index and the rate excluding food and energy increased in the month and year-on-year comparisons.” The market is now only pricing in a rate cut this year, with expectations shifting from September to December, according to Oldenburger.
The analyst warned against overvaluing the reaction, as the Fed has been communicating a cautious stance on rate cuts for a longer period. “All the indices on Wall Street are still near their all-time highs and can open the next rally chapter with a breakout above” he added.
Until just before the closing, Siemens Energy shares led the list, while Vonovia shares formed the bottom of the list.
Meanwhile, the gas price fell: a megawatt-hour (MWh) of gas for delivery in March cost 56 euros, a 4% decrease from the previous day. This implies a consumer price of at least around 10 to 12 cents per kilowatt-hour (kWh) including additional costs and taxes, if the price level remains so.
The oil price also fell significantly: a barrel of the North Sea Brent cost $75.78 at around 5 pm German time, a 122-cent or 1.6% decrease from the previous day’s close.
The European common currency was slightly weaker: one euro cost $1.0356, while one dollar was worth $0.9656.