On Wednesday, the Dax experienced a cautious start to the trading day, with the index weakening by midday. At around 12:30 PM, the leading index was calculated at approximately 23,510 points, 0.6 percent lower than the previous day’s closing level.
Eon’s shares, in particular, were in high demand. The energy company had presented a significantly improved first-quarter result.
“Quarterly reports from some European companies, such as Brenntag and Alstom, are putting an end to the potential record-breaking run in the Dax” said market analyst Andreas Lipkow. “Investors are increasingly focusing on microeconomic data, which reveals a very heterogeneous data landscape.”
Many industries continue to face a gloomy market environment and the potential impact of US tariffs is unlikely to significantly improve the situation. “Therefore, investors are turning to defensive sectors and favoring stocks like Eon. The market environment will remain tense and challenging and volatility will continue to be a constant companion for investors” Lipkow explained.
Meanwhile, the euro strengthened against the US dollar, with one euro costing 1.1243 US dollars and one US dollar being equivalent to 0.8894 euros.
The oil price also saw a significant decline, with a barrel of North Sea Brent crude costing around 65.78 US dollars on Wednesday afternoon, representing a decrease of 85 cents or 1.3 percent compared to the previous trading day’s closing level.