Germany’s benchmark DAX index experienced a shift into negative territory by midday Tuesday, following a cautious opening. Around 12:30 PM local time, the index was calculated at 23,970 points, approximately 0.5 percent below its closing value from the previous trading day. Leading the gains were Sartorius, Siemens Energy and Henkel. Conversely, SAP, Hannover Rück and Münchener Rück registered the most significant losses.
Market analysts at Helaba attributed the morning’s cautious trading to newly released economic expectations from the ZEW institute. The analysts noted “a clear deterioration in sentiment among German financial analysts and asset managers” citing a substantial decline in the ZEW balance of expectations, which fell short of even already weak consensus estimates.
The balance of current assessments also decreased notably. Helaba analysts indicated that “the outlook for the German economy is darkening and the indication for the upcoming Ifo business climate is negative”. However, the analysts suggested this could potentially support expectations regarding interest rate cuts by the European Central Bank.
The Euro demonstrated slight weakening against the US dollar by midday, trading at 1.1611 US dollars, while the dollar was valued at 0.8612 Euros.
Meanwhile, oil prices increased, with a barrel of North Sea Brent crude costing 66.86 US dollars around 12:00 PM German time, a gain of 23 cents, or 0.4 percent, from the previous day’s close.