The German stock index, DAX, opened Wednesday with modest gains. By 9:30 AM local time, the index was calculated at 24,205 points, representing a 0.8 percent increase from the previous day’s closing value. Leading gainers included Rheinmetall, SAP and Zalando, while Siemens Energy, Porsche and Commerzbank were among the lowest performers.
Market expert Thomas Altmann of QC Partners noted that the DAX remains within reach of a new all-time high. Focus is shifting to Friday, when significant put option positions – currently the four largest hedging positions – expire. “If these are not extended, the DAX will lose another layer of its safety net. These top four alone currently account for 13 percent of the total DAX hedging” Altmann explained.
Altmann further observed that risks are largely being overlooked by investors. Rising interest rates have also not yet impacted the current market optimism. The yield on 30-year German government bonds reached its highest level since 2011 yesterday. “The immediate consequence of this is higher financing costs for companies, which directly impacts profits.
The Euro demonstrated strengthening against the US dollar Wednesday morning, trading at 1.1709 US dollars, while the dollar was valued at 0.8540 Euros.
Meanwhile, oil prices experienced a slight decrease. A barrel of Brent crude oil was trading at 66.10 US dollars around 9:00 AM German time, down 2 cents, or 0.0 percent, from the previous day’s closing price.