German equities began the trading day positively on Thursday. By 9:30 AM local time, the DAX was calculated at 24,170 points, representing a 0.5 percent increase compared to the previous day’s closing value. Continental, Siemens and Mercedes-Benz led the gainers. Shares of Deutsche Telekom, Eon and Qiagen were among the lowest performers.
Market analyst Andreas Lipkow noted that investors are currently evaluating the quarterly results of Nvidia while also processing upcoming macroeconomic data. He anticipates Nvidia may meet or exceed market expectations in its financial report.
However, Lipkow indicated that initial reactions to the earnings have been more cautious, leading to profit-taking in after-hours trading. Today’s economic calendar includes initial jobless claims and the release of the US Gross Domestic Product for the second quarter. “Both datasets will be of particular interest in anticipation of the upcoming US Federal Reserve meeting in September” Lipkow stated, adding that sentiment regarding potential interest rate cuts could be influenced by the data.
Investor attention is also increasingly focused on France. Thomas Altmann of QC Partners described the country as a focus of concern for the markets. “French government bond yields are now converging with those of Italy. The spread on 30-year bonds is currently at its narrowest since 1999, coinciding with the introduction of the Euro” he explained. Altmann suggested that a change in government in France could lead to extended political uncertainty, a situation a highly indebted nation could ill afford.
The Euro saw a slight strengthening in early trading. The currency was valued at 1.1643 US dollars, with the dollar trading at 0.8589 Euros.
Oil prices declined, with Brent crude futures trading at 67.51 US dollars per barrel around 9:00 AM CET, a decrease of 54 cents, or 0.8 percent, from the previous session’s close.