Markets in Germany and Europe Show Caution Amid Summer Heat
The German Dax index, a benchmark for the country’s stock market, made a slow start on Tuesday but eventually turned green by midday. By 12:30 pm, the index had reached around 23,945 points, a 0.1% increase from the previous trading day. Top performers in the market included Rheinmetall, Deutsche Telekom and Vonovia, while the laggards were Zalando, Adidas and Continental.
Market expert Andreas Lipkow noted that investors seem to be growing sluggish, with a lack of enthusiasm for German blue-chip stocks. He attributed this to the recent trading sessions, which had seen the Dax index largely immune to external factors.
The European price data, meanwhile, reinforced the scenario of a potential interest rate cut by the European Central Bank next Thursday and thus failed to generate any surprise momentum.
Lipkow emphasized the importance of progress in the trade dispute between the US, Europe and China, which has been overshadowed by the US-EU-China trifecta. The European Union, he noted, is also embroiled in a trade dispute with China, but investors are currently focusing primarily on the US-EU dispute.
As the summer heat intensifies, the international financial markets are also experiencing a rise in tension, Lipkow said.
The euro, the common currency of the European Union, was weaker on Tuesday, with one euro equivalent to 1.1406 US dollars and one US dollar worth 0.8767 euros.
Meanwhile, the price of oil rose, with a barrel of Brent crude, a North Sea variety, trading at 64.96 US dollars at 12 pm German time, a 0.5% increase from the previous day’s close.