Financial Markets Stabilize as Frankfurt Stock Exchange Opens
The Frankfurt Stock Exchange opened with a steady start on Wednesday, with the Dax index initially recording gains. By 9:30 am, the Dax had reached approximately 24,270 points, a 0.7 percent increase compared to the previous day’s close. Infineon, Airbus and Deutsche Post led the list of top performers, while Sartorius, Siemens Energy and Rheinmetall lagged behind.
The newly imposed tariffs on steel and aluminum imports into the United States did not trigger significant market reactions, according to Thomas Altmann of QC Partners. “Markets have become less reactive to new tariffs” he said, “and some on the floor are speculating that these tariffs might be a short-term pressure tool and may not last long.”
At present, the Dax is characterized by a wait-and-see approach, Altmann noted. “Trading volumes have been underwhelming for the first two days of this week and the buying of hedging positions continues.” The faith in a continued rally is waning, but there is also a fear of taking profits too early.
Meanwhile, the euro was slightly stronger against the US dollar, with one euro valued at 1.1389 US dollars and one dollar worth 0.8780 euros. The price of oil, however, decreased, with a barrel of North Sea Brent crude selling for approximately 65.44 US dollars at 9 am German time, a 19-cent or 0.3 percent decrease from the previous day’s close.