The DAX moved into the red zone by midday on Thursday, after a cautious start. By 12:35 pm, the index was calculated at around 19,840 points, a decline of 0.4% from the previous trading day. Airbus, Hannover Rück, and RWE led the stock market, with BMW, Mercedes-Benz, and Volkswagen closing the top five.
“The DAX is not having a straightforward start to the year” said market expert Andreas Lipkow. “With a slightly cautious attitude, it can only briefly hold the level above 20,000 points before profit-taking sets in and pushes the German stock index back down to around 19,900 points.”
Investors were extremely selective in their stock picks, focusing on defensive sectors, according to Lipkow. Cyclical sectors were less in demand at the start of the year. “The European economic outlook card is not a real trump card, and will not be played by investors for the time being” added the market expert. “Much depends on the US trading session today. It will then show whether investors will shift into high gear for German standard stocks or completely take their foot off the gas.”
The European common currency was weaker on Thursday morning: one euro was worth 1.0321 US dollars, and one US dollar was equivalent to 0.9689 euros.
Meanwhile, the oil price rose significantly: a barrel of North Sea Brent cost around 75.70 US dollars by 12 pm German time, a 1.4% increase from the close of the previous trading day.